Scrip Code / Symbol: BSE: 500878, NSE: CEATLTD, NCD: CL26, CL30

Meeting Details

The Finance and Banking Committee (FBC) of the Board of Directors of CEAT Limited held a meeting on August 17, 2026. The meeting commenced at 6:45 p.m. IST and concluded at 7:10 p.m. IST.

Nature and Purpose of the Meeting

The committee meeting was convened to consider and approve the partial conversion of pre-existing inter-company loans into equity shares of CEAT OHT Lanka (Private) Limited, a wholly owned subsidiary of the Company.

Details of Resolutions Passed

The Finance and Banking Committee approved the conversion of USD 24.5 million portion of a pre-existing inter-company loan into equity shares of CEAT OHT Lanka (Private) Limited. This represents conversion of LKR 8,218,525,000 (USD equivalent of 24.5 million) into 12,788,094 ordinary shares at a subscription price of LKR 642.67 per share.

The total loan amount to the subsidiary is USD 80 million, of which USD 24.5 million is proposed to be converted. The transaction does not involve any fresh infusion of capital or movement of funds.

Financial Impact

The conversion strengthens the capital structure of the subsidiary by converting debt to equity. CEAT OHT Lanka (Private) Limited will continue to remain a 100% wholly owned subsidiary of CEAT Limited, with no change in percentage shareholding.

Compliance References

The disclosure is made pursuant to Regulations 30 and 51 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The proposed conversion is subject to approval by the Board of Investment (BOI) in Sri Lanka, as required under local norms.

Additional Material Information

Target Entity Details:

  • Name: CEAT OHT Lanka (Private) Limited
  • Industry: Automotive Tyres, Tubes, Tracks and other ancillary products/activities
  • Size/Turnover: INR 4,206 Million (FY2025-26)
  • Incorporation Date: March 3, 2025
  • Historical Turnover: FY2023-24: Nil, FY2024-25: Nil, FY2025-26: INR 4,206 Million

Related Party Status: The target entity is a wholly owned subsidiary and therefore constitutes a related party transaction. The Promoter/promoter group/group companies of CEAT Limited have no interest in the entity beyond this subsidiary relationship.

Timing: No specific time period for completion is provided since the shares arise from conversion of existing loan.

Use of Proceeds: Not mentioned in the document.