CEAT to infuse ₹400 Crore into Sri Lankan unit; stock dips

26 Jun 2025 , 03:26 PM

CEAT Limited announced that it is planning to inject about ₹400 Crore in its wholly-owned Sri Lankan subsidiary, CEAT OHT Lanka (Private) Limited. It also said that it is planning to raise approximately ₹500 Crore via issue of unsecured non-convertible debentures (NCDs) via private placement. 

The company will carry out capital infusion in one or more tranches via issue of equity or preference shares, stated the company in its filing with the bourses. The company informed that it will utilise this investment to partly fund CEAT’s planned acquisition of off-highway construction equipment tyre and track business of the Camso brand. 

CEAT OHT Lanka was recently incorporated and has not started its commercial operations yet.

In a separate disclosure made, CEAT said that its board approved its plans to raise up to ₹500 Crore via rated, listed, unsecured redeemable NCDs. The tenure of NCDs shall not exceed five years. The company also said that debentures shall be issued in one or more tranches. These NCDs shall be listed on the wholesale debt market segment of the National Stock Exchange (NSE). 

The company said that the funds raised through NCDs shall be utilised for general corporate purposes. This includes capacity expansion, refinancing high-cost debt, and meeting requirements of working capital.

At around 3.15 PM, CEAT was trading 2.38% lower at ₹3,560 per piece, against the previous close of ₹3,646.80 on NSE. 

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