CEAT board approves NCD issue

The tyre maker on Friday (25 September 2020) said that its board approved raising Rs 250 crore through issue of 2,500 non-convertible debentures (NCDs) on a private placement basis, in one or more tranches.

Further, the board also authorized the finance and banking committee of the company to approve the further raising of funds upto Rs 250 crore (over and above the raising of funds of Rs 250 crore as mentioned above) through issuance of NCDs on private placement basis, in one or more tranches.

Separately, credit ratings agency India Ratings and Research (Ind-Ra) has assigned IND AA rating with stable outlook for the company's proposed issue of NCDs of upto Rs 250 crore.

Ind-Ra affirmed its ratings on the company's long-term bank facilities worth Rs 2,491 crore at IND AA-Stable and commercial paper (CP) issue worth Rs 350 crore at IND A1+.

CEAT, the flagship company of RPG Enterprises, is a tyre manufacturer and has a strong presence in global markets.

The tyre manufacturer reported consolidated net loss of Rs 34.76 crore in Q1 June 2020 as compared to net profit of Rs 82.60 crore in Q1 June 2019. Total income fell 36.33% to Rs 1,126.46 crore in Q1 FY21 over Q1 FY20.

The scrip gained 2.13% to end at Rs 906.60 on Friday. In the past six months, the stock has jumped 45.67% while the benchmark S&P BSE Sensex added 31.02% during the same period.

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