CEAT board greenlights ₹250-crore NCD issue, investment in Indonesian arm

Tyre maker CEAT Ltd on Friday (December 5) said it has approved the issuance of unsecured non-convertible debentures (NCDs) aggregating up to ₹250 crore and a fresh investment of IDR (Indonesian rupiah)

3,800 million in its Indonesian subsidiary, PT CEAT Tyres Indonesia. The decisions were taken by the company’s Finance and Banking Committee at its meeting held on December 5, 2025.

The proposed NCD issue will be executed on a private placement basis. CEAT plans to issue 2,500 rated, listed, unsecured, redeemable NCDs with a face value of ₹10,00,000 each, in one or more tranches. This issuance is in addition to the existing ₹150 crore of NCDs already issued by the company. The instruments will have a tenure not exceeding five years and will be listed on the wholesale debt market segment of the National Stock Exchange of India Limited.

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The coupon will be a fixed rate, determined through bidding on the electronic book provider platform of NSE. Interest will be paid annually, and principal repayment will be made through a bullet payment at the end of the maturity period. Since the NCDs are unsecured, no charge on assets will be created. All terms for the issue remain indicative and subject to evolving market conditions.

In parallel, CEAT approved an investment of up to IDR 3,800 million in PT CEAT Tyres Indonesia, its subsidiary incorporated in February 2025. The investment will be made through subscription to equity shares in one or more tranches, funded through cash remittances via normal banking channels. The subsidiary was initially set up with a capital of IDR 10,010,000,000 and reported a turnover of IDR 2,953.64 million for the period ended September 30, 2025.

Upon completion, CEAT’s shareholding in the subsidiary will increase to about 99.93%. PT CEAT Tyres Indonesia is engaged in the sale of automotive tyres, tubes and other ancillary products, and is based in Indonesia. The company expects the transaction to be completed by January 31, 2026.

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Shares of CEAT Ltd ended at ₹3,913, up by ₹26.30, or 0.68%, on the BSE today, December 5.