Date: September 23, 2026
Disinvestment / Strategic Actions
CEAT Limited has executed a loan conversion agreement with its wholly-owned subsidiary, CEAT OHT Lanka (Private) Limited, converting USD 24.5 million of pre-existing inter-company loan into equity shares. The conversion was completed on September 23, 2026, following approval from the Board of Investment (BOI), Sri Lanka.
Key Details:
- Target Entity: CEAT OHT Lanka (Private) Limited (WOS)
- Industry: Automotive Tyres, Tubes, Tracks and other ancillary products/activities
- Total Loan Amount: USD 80 million
- Converted Amount: USD 24.5 million (equivalent to LKR 8,218,525,000)
- Shares Issued: 12,788,094 ordinary shares
- Subscription Price: LKR 642.67 per share
- Ownership Impact: No change in shareholding percentage; subsidiary remains 100% owned
- Regulatory Approval: Board of Investment (BOI), Sri Lanka
Subsidiary Financial Information:
- Incorporation Date: March 3, 2025
- Turnover History:
- FY2023-24: Nil
- FY2024-25: Nil
- FY2025-26: INR 4,206 Million
- Business: Selling Automotive Tyres, Tubes, Tracks and other ancillary products/activities
Transaction Nature:
- Related Party Transaction: Yes (wholly-owned subsidiary)
- Arm's Length: Implied as no other promoter/promoter group/group companies have any interest in the entity
This transaction represents a capital restructuring within the group, converting debt to equity in the subsidiary without any cash consideration or change in ultimate ownership.