CEAT’s Board has approved the issuance of unsecured Non-Convertible Debentures (NCDs) up to ₹250 crores via private placement. This supplements the existing ₹150 crores of NCDs already issued. Additionally, the board has greenlit an investment of up to IDR 3,800 Million (approximately INR 2.07 Crores) into its Indonesian subsidiary, PT CEAT Tyres Indonesia.
NCD Issuance Approved
The Finance and Banking Committee (FBC) of CEAT’s Board of Directors has approved the issuance of unsecured Non-Convertible Debentures (NCDs) for an amount up to ₹250 crores. The issuance will be conducted in one or more tranches through private placement. The NCDs will be listed on the Wholesale Debt Market Segment of the National Stock Exchange of India Limited and have a tenure not exceeding 5 years. Coupon/interest will be fixed, with annual interest payments and bullet repayment at maturity.
Details of the NCDs
The NCDs are rated, listed, and unsecured. The total number of securities proposed to be issued is 2,500 NCDs, each with a face value of ₹10,00,000. The coupon rate will be determined through bidding at the Electronic Book Provider (EBP) Platform of NSE.
Investment in PT CEAT Tyres Indonesia
The FBC has also approved an investment of up to IDR 3,800 Million (approximately INR 2.07 Crores, or equivalent currency) into PT CEAT Tyres Indonesia, a subsidiary of the company. The investment will be made through subscription to equity shares.
About PT CEAT Tyres Indonesia
PT CEAT Tyres Indonesia was incorporated in February 2025. The entity is engaged in the business of selling Automotive Tyres, Tubes, and other ancillary products/activities. The investment is expected to be completed by Jan 31, 2026. Post-investment, CEAT’s shareholding in PT CEAT Tyres Indonesia shall be about 99.93%.
Source: BSE
