Ceat Board To Meet On June 10 To Consider Issuance Of NCDs
Non-convertible debentures are fixed-income instruments that provide structured returns to investors.
Ceat Ltd.'s board of directors will meet next Tuesday to consider and approve issuance of non-convertible debentures on a private placement basis aggregating up to Rs 500 crore.
"As applicable, and pursuant to shareholders’ enabling approval vide Annual General meeting held on Aug. 29, 2024, this is to inform you that meeting of Finance and Banking Committee of board of directors of the company is scheduled to be held on June 10, inter-alia to consider and approve issuance of NCDs on a private placement basis, aggregating up to Rs 500 crore," according to an exchange filing on Thursday.
An NCD is a fixed-income instrument that provides structured returns to investors. As NCDs are unsecured and not backed by assets, the market participants evaluate the issuing company's creditworthy and debt-servicing capacity before allotment.
Earlier on April 29, Ceat reported a 16% fall in standalone net profit during the quarter ended March 31, 2025, missing analyst estimates.
The type manufacturer's net profit fell to Rs 100.4 crore for the fourth quarter of fiscal 2025 as compared to Rs 119.1 crore for the same period last year. That compares with a consensus estimate of Rs 116 crore by analysts polled by Bloomberg.
Ceat proposed a dividend of Rs 30 per share for the fiscal year 2024-25, subject to the approval from the shareholders at the annual general meeting.
Shares of Ceat closed 2.39% higher at Rs 3,707.20 apiece on the NSE, compared to a 0.53% rise in the benchmark Nifty 50. The stock has risen by 55.06% in the last 12 months but fallen 14.72% on a year-to-date basis.
Out of 21 analysts tracking the company, 15 have 'buy' rating on the stock, three recommend 'hold' and three suggest 'sell', according to Bloomberg data. The average of 12-month analysts' price target implies a potential upside of 2%.
