CEAT Limited has informed the Exchange regarding Outcome of Board Meeting held on December 30, 2025.
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CEAT Limited's Finance and Banking Committee, at a meeting on December 30, 2025, approved the allotment of 25,000 unsecured, rated, listed, redeemable Non-Convertible Debentures (NCDs) of face value Rs 1,00,000 each, aggregating to Rs 250 crores. The NCDs carry a coupon (interest rate) of 7.20% per annum, payable annually, and have a 5-year tenure maturing on December 30, 2030. The debentures are proposed to be listed on the Wholesale Debt Market segment of the NSE and will be redeemed at par (full face value) at the end of 5 years. This is a private placement, meaning the NCDs are being issued directly to selected investors rather than the general public.
For equity shareholders, this is a debt-raising move — CEAT is borrowing Rs 250 crore at 7.20% interest. There is no equity dilution since NCDs are debt instruments and not convertible into shares. The borrowing will add to the company's interest expenses but is at a reasonable market rate, and proceeds will likely be used for general corporate purposes or refinancing.