Published On:November 28 2014
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Ceat raises Rs. 400 cr via QIP, to use funds for expansion.
Tyre maker Ceat recently said it has raised Rs. 400 crore through a qualified institutional placement and the funds would be utilised for expansion.
The company will issue 44,94,382 equity shares at a price of Rs. 890.00 per share, the company said in a statement.
The issue price translates to a discount of approximately 0.8 per cent on closing price on November 26, 2014, it added.
Ceat Managing Director Anant Goenka said: 'The proceeds from the QIP is proposed to be used, inter alia, for capacity expansion at the Halol plant, two-wheeler tyres project etc.
The projects are proposed to be funded through a mix of net proceeds from the issue, internal accruals and debt. The exact mix of the same is under evaluation.'
The book running lead managers to the QIP are JM Financial Institutional Securities Ltd and Standard Chartered Securities (India) Ltd. Khaitan & Co has acted as domestic legal counsel to the issue and Dorsey & Whitney LLP acted at international legal counsel to the book running lead managers, the company said.