CEAT Accelerates: ₹10 Billion Credit, ₹4 Billion Sri Lanka Bet, and NCD Drive

CEAT Ltd has announced a series of important financial decisions aimed at supporting its growth and international expansion. The company will avail a credit facility of up to ₹10 billion, invest up to ₹4 billion in its Sri Lankan subsidiary, and issue non-convertible debentures (NCDs) worth up to ₹5 billion.

 

Key Highlights:

 

CEAT is set to secure a credit facility of up to ₹10 billion, which will provide additional liquidity and flexibility for its ongoing and future business operations.

 

The company plans to infuse up to ₹4 billion into its Sri Lankan subsidiary, CEAT OHT Ventures (Private) Limited. This move will support the subsidiary’s manufacturing and storage operations, reinforcing CEAT’s global footprint and strengthening its presence in the Sri Lankan market.

 

CEAT’s board has also approved the issuance of NCDs worth up to ₹5 billion. These funds will help the company manage its capital requirements and maintain a healthy balance sheet.

 

Recent financial reports highlight CEAT’s strong liquidity profile, robust cash accruals, and improved operating margins, positioning the company well for these new initiatives.

 

CEAT’s credit rating has recently been upgraded to ‘Positive’ by India Ratings, reflecting confidence in its operational performance and capital management.

 

These steps are expected to enhance CEAT’s financial flexibility, support its expansion plans, and drive further growth in both domestic and international markets.

 

Source: CEAT Ltd, India Ratings, CARE Ratings, Autocar Professional