Ceat, yesterday, announced that it has raised Rs 400 crore through a qualified institutional placement (QIP) and that the funds would be utilised for expansion.
The proceeds from the QIP are proposed to be used for capacity expansion at Ceat’s Halol plant, two-wheeler tyres project etc.
The projects are proposed to be funded through a mix of net proceeds from the issue, internal accruals and debt. The exact mix of the same is under evaluation.
The company has announced plans to increase the capacity of the Halol unit from its existing 130 tonne per day to 300 tonne per day.
Last month, the company’s Board of Directors approved an investment of Rs 420 crore for setting up a two-wheeler tyres plant with a capacity of 120 metric tonne per day at Maharashtra Industries Development Corporation's (MIDC) Butibori estate.
In the same month, Ceat also approved an investment of Rs 50 crore for implementing a project to manufacture of speciality tyres (which includes off- the-road tyres) through a subsidiary company.
More Project Info:
Radial Tyres (Halol) Project