CEAT has approved an investment of up to ₹4.60 crore in its wholly owned subsidiary, Tyresnmore Online Private Limited, through a rights issue.

The company will subscribe to 37,686 equity shares of Tyresnmore with a face value of ₹1 each. The allotment of these shares is scheduled to be completed by October 7, 2026.

Transaction details and structure

The investment is structured as a cash consideration remitted through normal banking channels. Following this infusion, CEAT’s shareholding in Tyresnmore remains unchanged at 100%.

Regulatory and related party disclosures

The proposed investment falls under the purview of transactions with related parties as defined under Section 177 of the Companies Act, 2013 and Regulation 23 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. CEAT confirmed that the transaction is conducted at arm's length.

Except for its status as a wholly owned subsidiary, neither the promoter nor the promoter group holds any interest in Tyresnmore or the transaction itself. No governmental or regulatory approvals other than those already obtained are required for this acquisition.

About Tyresnmore Online Private Limited

Tyresnmore is an auto ancillary entity engaged in selling automotive tyres, batteries, and providing services such as installation, fitting, wheel balancing, and alignment. Incorporated on June 2, 2014, with its registered office in New Delhi, the company has shown consistent growth in turnover over the last three fiscal years.

What the numbers show

The disclosed turnover figures for Tyresnmore indicate a strong upward trajectory, growing from ₹2,558.64 lakh in FY24 to ₹4,329.13 lakh in FY26. This represents a significant expansion in scale for the subsidiary, which likely necessitates the capital infusion to support operational growth and inventory requirements within the auto ancillary sector.

CEAT Limited executed a USD 24.5 million loan-to-equity conversion in its wholly owned subsidiary, CEAT OHT Lanka (Private) Limited, on September 23, 2026. The transaction strengthens the capital structure of the Sri Lanka-based tyre distributor.

The conversion involved transforming a portion of a pre-existing inter-company loan into ordinary shares. This action follows a disclosure made on August 17, 2026, and received necessary approval from the Board of Investment (BOI) in Sri Lanka under local norms. The total outstanding loan amount to the subsidiary was USD 80 million, of which this specific tranche has now been converted.

Transaction specifics

The agreement resulted in the issuance of 12,788,094 ordinary shares at a subscription price of LKR 642.67 per share. The total consideration for this equity infusion amounts to LKR 8,218,525,000, equivalent to USD 24.5 million. Since the shares arose from a debt conversion, no separate cash payment was required from the parent company.

Subsidiary profile and impact

CEAT OHT Lanka is engaged in the sale of automotive tyres, tubes, tracks, and other ancillary products. Incorporated on March 3, 2025, the entity reported its first turnover of INR 4,206 million in FY26. Prior fiscal years, FY25 and FY24, recorded nil turnover as the entity was not yet operational or fully established.

The conversion does not alter the ownership structure. CEAT OHT Lanka remains a 100% wholly owned subsidiary of CEAT Limited. As a related party transaction, the company confirmed that promoter group entities hold no other interest in the subsidiary beyond this parent-subsidiary relationship.

What the numbers show

The conversion reduces the subsidiary's external debt burden by converting 30.6% of its total inter-company liability (USD 24.5 million out of USD 80 million) into equity. This move likely improves the subsidiary's balance sheet health by eliminating interest obligations on the converted amount while maintaining full control by the parent. The shift from debt to equity supports the newly formed entity's financial stability as it begins generating revenue.