CEAT Limited has finalized the conversion of a USD 24.5 million portion of an inter-company loan into equity shares of its wholly-owned subsidiary, CEAT OHT Lanka (Private) Limited. This transaction, executed on September 23, 2026, follows the approval of the Board of Investment in Sri Lanka. The conversion does not alter CEAT’s 100% ownership of the subsidiary, which is involved in the automotive tire and ancillary products business.
Loan Conversion Agreement Executed
CEAT Limited announced today the execution of a loan conversion agreement with its wholly-owned subsidiary, CEAT OHT Lanka (Private) Limited. This agreement formalizes the conversion of a principal amount of USD 24.5 million from an inter-company loan into equity shares of the Sri Lankan entity. The conversion took place on September 23, 2026.
Subsidiary Details and Business Operations
CEAT OHT Lanka (Private) Limited, incorporated on March 3, 2025, is based in Sri Lanka and operates in the business of selling automotive tires, tubes, tracks, and other related ancillary products. The company’s turnover for the fiscal year 2025-26 is reported at INR 4,206 Million. The subsidiary is considered a related party to CEAT Limited due to its wholly-owned status.
Transaction Rationale and Impact
This conversion is part of a larger plan where the total outstanding inter-company loan amounted to USD 80 million, with USD 24.5 million now converted to equity. The transaction received the necessary approval from the Board of Investment (BOI) in Sri Lanka, fulfilling local regulatory requirements. Importantly, this equity issuance by the subsidiary has not changed CEAT Limited’s 100% shareholding in CEAT OHT Lanka (Private) Limited. The conversion was executed at a subscription price of LKR 642.67 per share, resulting in the issuance of 12,788,094 ordinary shares.
Source: BSE
