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CEAT gains on plan to hike stake in Tyresnmore Online

Capital Market 

CEAT rose 2.81% to Rs 1,583.40 after the company announced its plan to acquire an additional 3.47% stake Tyresnmore.

CEAT has entered into a third addendum agreement to the existing share subscription and shareholders' agreement with Tyresnmore Online, an associate of the company and other parties, for making a future investment of up to Rs 2.4 crore in Tyresnmore for an additional 3.47% of the post issue total share capital.

Upon completion of the investment, the total holding of CEAT in Tyresnmore on a fully diluted basis would be 44.17%.

"The proposed investment is by way of subscribing to 12,895 Compulsorily Convertible Preference Shares (CCPS) having face value of Re 1 each to acquire additional 3.47% of the post issue total share capital of Tyresnmore on a fully diluted basis," company said in a regulatory filing on Thursday.

Tyresnmore is engaged in the business of selling automotive tyres, accessories and/or providing services of installing, fitting, wheel balancing and wheel alignment for automotive tyres.

CEAT is a tyre manufacturer and has a strong presence in global markets. The tyre maker's consolidated net profit surged 152.10% to Rs 132.34 crore on a 26.10% increase in net sales to Rs 2,221.25 crore in Q3 FY21 over Q3 FY20.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Fri, April 09 2021. 10:26 IST