CEAT Limited has approved an investment of up to ₹2.74 Crore in TyresNmore Online Private Limited by subscribing to a rights issue of 22,447 equity shares. TyresNmore, a wholly owned subsidiary of CEAT Limited, operates in the auto ancillary sector, selling automotive tyres, batteries, and providing related services. The investment ensures the parent company's shareholding remains at 100% post-allotment.

The rights issue involves the subscription of 22,447 equity shares with a face value of Re.1 each. The consideration will be paid in cash through normal banking channels. The shares are expected to be allotted to CEAT by TyresNmore latest by July 31, 2026.

TyresNmore Online Private Limited was incorporated on June 2, 2014, and is based in New Delhi. The entity is engaged in selling automotive tyres, accessories, and providing services such as installation, fitting, wheel balancing, and alignment.

The financial performance of TyresNmore has shown consistent growth over the past three fiscal years. The company reported a turnover of ₹2,558.64 Lakhs in FY 2023-24, which increased to ₹3,225.73 Lakhs in FY 2024-25, and further rose to ₹4,329.13 Lakhs as on March 31, 2026.

Financial Performance of TyresNmore

The following table outlines TyresNmore's turnover across recent fiscal years, reflecting steady revenue growth:

Regulatory and Transaction Details

The proposed investment falls under the purview of related party transactions under Section 177 of the Companies Act, 2013, and Regulation 23 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The transaction is being conducted at arm's length. Aside from being a wholly owned subsidiary, the promoter, promoter group, or group companies of CEAT Limited do not hold any other interest in TyresNmore.

CEAT has received a reaffirmation of its credit ratings from India Ratings, with the agency maintaining an 'IND AA/Positive' outlook across the company's key debt instruments. The affirmation underscores the rating agency's continued confidence in CEAT's financial profile and creditworthiness.

Credit Rating Details

India Ratings has affirmed the ratings across CEAT's key debt instruments at the 'IND AA' level with a Positive outlook. The following table summarises the rating action:

Significance of the Rating Affirmation

An 'IND AA' rating denotes a high degree of safety regarding timely servicing of financial obligations, with very low credit risk. The Positive outlook assigned alongside the rating indicates that India Ratings views the company's credit profile favourably. The affirmation across key debt instruments reflects the agency's assessment of CEAT's overall financial and operational standing.

This rating action by India Ratings provides a measure of assurance to investors and lenders regarding CEAT's debt obligations and its ability to meet financial commitments.