CEAT’s board approves issuance of NCDs up to ₹250 crore, to invest ₹3 crore in Indonesia unit; stock up 22% in 2025

Tyre maker CEAT Ltd's Board of Directors’ Finance and Banking Committee (FBC) on Friday, December 5, approved the issuance of unsecured non-convertible debentures (NCDs) up to ₹250 crore.

This is an addition to the existing NCDs worth ₹150 crores that the company has already issued, it said in a regulatory filing.

The NCDs, which will be issued in one or more tranches on a private placement basis, will be listed on the wholesale debt market segment of the National Stock Exchange (NSE), it added.

The issue of 2,500 NCDs, with a face value of ₹10 lakh each, will have a tenure not exceeding five years, with annual interest payments and bullet repayment of principal at maturity, the Mumbai-headquartered firm stated.

The NCDs' fixed coupon rate will be determined based on bidding at the Electronic Book Provider (EBP) platform of the NSE, it added.

Furthermore, its board also approved an investment of up to 3,800 million Indonesian Rupiah (IDR) or approximately ₹2.07 crore in its subsidiary PT CEAT Tyres Indonesia.

The investment will be made in one or more tranches by way of subscription to equity shares, it added.

CEAT Q2 results

The firm reported a 54% year-on-year (YoY) increase in its consolidated net profit to ₹186 crore for the September quarter of FY26, compared to ₹121 crore it logged in the year-ago period.

It witnessed a 14.19% annual surge in revenue from operations to ₹3,773 crore during the quarter under review, as against ₹3,304 crore for the second quarter of FY25.

CEAT stock performance

Shares of CEAT closed 0.39% higher at ₹3,904 apiece on the NSE on Friday. However, the NCD issuance announcement was made after the market closed.

The scrip has gained over 1% in the last week but lost more than 2% over the month. On a year-to-date basis, it has surged a little over 22%.

While the stock reached a 52-week high of ₹4,438 on October 28, 2025, it touched a year’s low of ₹2,343.05 per equity share on March 4, 2025.

CEAT has a total market capitalisation of ₹15,791.72 crore, as of December 5, 2025, according to data on the NSE.