Ceat India aims to raise €10m through rights issue

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Mumbai, India - CEAT Ltd, a subsidiary of the Indian RPG group, has decided to come out with a Rights Issue in the ratio of 3 shares for every 10 shares held. The company proposes to raise Rs. 52.7 crore (Euro 9.7 million) through the issue.

The issue has been priced at Rs. 50 per share, which is at a discount of about 45% to yesterday's closing price on NSE.

Ceat said its revenue has grown by about 40 percent in the last three years. It is expected to cross Rs. 2000 crore (Euro 368 million) during the current fiscal. The proceeds of Rights Issue would be used for further growth.

Ceat Ltd claims to be a major player in all segments in the Indian tyre market. It has ISO/ TS 16949 certified manufacturing facilities at Mumbai and Nashik and employs nearly 4800 employees. CEAT is a part of the Rs. 8,450 crore RPG Enterprises, one of the leading industrial groups in India.

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Press release from Ceat

Ceat: Invest Hindu Business Line (India)

Ceat: Subscribe to rights offer Sify (India)