CEAT Share Price in Focus; Converts $24.5 Million Inter-Company Loan into Equity

CEAT Limited has converted $24.5 million from a pre-existing inter-company loan into equity shares of CEAT OHT Lanka (Private) Limited, its wholly owned subsidiary in Sri Lanka. The loan conversion agreement was executed on September 23, 2026, as per the filing.  

The conversion was completed after the company received approval from the Board of Investment (BOI), Sri Lanka, as required under local regulations. Additional equity shares were issued by CEAT OHT Lanka following the approval.  

$80 Million Loan 

The transaction covers part of the existing inter-company loan between CEAT and CEAT OHT Lanka. The total loan amount stands at $80 million, of which $24.5 million has now been converted into equity shares.  

The amount converted was LKR 8,218,525,000, equivalent to $24.5 million. CEAT OHT Lanka issued 12,788,094 ordinary shares at a subscription price of LKR 642.67 per share against the converted amount.  

Details of CEAT OHT Lanka 

CEAT OHT Lanka was incorporated on March 3, 2025, and has its registered office in Sri Lanka. Its business includes the sale of automotive tyres, tubes, tracks, and other ancillary products and activities.  

The subsidiary reported turnover of INR 4,206 million in FY2025-26. Its reported turnover was nil in FY2023-24 and FY2024-25. The company stated that the earlier periods had no turnover as the entity was incorporated only in March 2025.  

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Shareholding Unchanged 

The conversion does not change CEAT’s ownership in the subsidiary. CEAT OHT Lanka will continue to remain a 100% wholly owned subsidiary of CEAT after the issue of the additional shares.  

As a wholly owned subsidiary, CEAT OHT Lanka is classified as a related party of CEAT. The company has stated that, apart from this relationship, the promoter, promoter group, and group companies have no other interest in the entity.  

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CEAT Limited Share Price Performance  

As of September 23, 2026, 3:30 pm, CEAT share price closed at ₹3,432.20, a 0.91% increase from the previous closing price. 

Conclusion 

CEAT has converted $24.5 million of its $80 million inter-company loan into equity in CEAT OHT Lanka. The subsidiary will continue under CEAT’s 100% ownership following the conversion. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

Investments in the securities market are subject to market risks, read all the related documents carefully before investing. 

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