CEAT Board Clears ₹5 Billion NCD Issue; To Infuse ₹4 Billion In Lanka Unit

CEAT Ltd.'s board on Wednesday approved raising up to ₹5 billion via unsecured non-convertible debentures to fund capacity expansion, reduce financing costs, and support general corporate needs, the tyre maker said in a stock exchange filing.

The company also plans to infuse ₹4 billion in its wholly-owned Sri Lankan subsidiary, CEAT OHT Lanka (Pvt.) Ltd., through equity in one or more tranches. The capital will partly fund the acquisition of Camso’s off-highway construction equipment tyre and tracks business.

Separately, the company said it has already raised ₹2.5 billion via NCDs and has also secured board approval for a credit facility of up to ₹10 billion in multiple tranches for business needs.