Moneycontrol PRO
Check Credit Score
Check Credit Score
HomeNewsBusinessCompanies

Ceat to use fund raising to finance ongoing projects

Ceat has plans to invest around Rs 300 crore in the Bangladesh project, while some portion of the raised capital would also be put in the Halol plant, which is currently undergoing expansion.

August 29, 2014 / 07:07 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Tyre maker Ceat, which plans to raise up to Rs 500 crore through issue of securities, will use majority of the fund to finance expansion of its ongoing projects in Bangladesh and Gujarat.Around Rs 300 crore will be invested in the Bangladesh project, while some portion of the raised capital would also be put in the Halol plant, which is currently undergoing expansion."The company has two large projects - there is one in Bangladesh, which is already underway where we will be investing about Rs 300 crore and the second is a project in Halol where we are adding some passenger-car radial capacity that is about Rs 650 crore expansion. Some of the funds raised will be used for that," Ceat Ltd Managing Director Anant Goenka told PTI.Some amount would be used for further expansion plans, opportunities that could come up in the next six-eight months' time as well, he added. The company's board had earlier this week approved to raise an amount not exceeding Rs 500 crore through further issue of securities including equity shares or Foreign Currency Convertible Bonds or American Depository Receipts.

As per the board approval, the firm can also raise capital via convertible debentures, non convertible debentures, preference shares convertible into equity shares or any other equity linked securities, by way of one or more public or  private offerings, including qualified institutions placement. The Mumbai-headquartered company, which produces tyres, tubes and flaps, said it is still to work out the exact amount to be raised through the issue of securities. Ceat shares were trading at Rs 587.40apiece on the BSE, down 0.11 per cent from previous close.

Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347