CEAT Expands Stake in Tyresnmore, Bolstering Automotive Tyre Market Presence
CEAT Limited, a leading player in the automotive tyre industry, has announced its intention to increase its investment in Tyresnmore Online Private Limited. In a Fifth Addendum Agreement to the existing Share Subscription and Shareholders’ Agreement, CEAT has committed to invest up to ₹9 Crore in Tyresnmore, acquiring an additional 10.89% of the fully diluted post-issue total share capital.
Upon completion of this investment, Tyresnmore will become a subsidiary of CEAT Limited. The expanded stake will result in CEAT’s total holding in Tyresnmore reaching 56.9% on a fully diluted basis.
Tyresnmore specializes in the sale of automotive tyres, accessories, and related services, including installation, fitting, wheel balancing, and wheel alignment.
The proposed investment entails the subscription of 59,582 Compulsorily Convertible Preference Shares (CCPS) at a face value of Re. 1 each. The subscription price for these shares is set at ₹1,510.50 (Indian Rupees One Thousand Five Hundred Ten and Fifty Paise only). This investment will secure an additional 10.89% ownership of the post-issue total share capital of Tyresnmore on a fully diluted basis.
CEAT’s decision to increase its stake in Tyresnmore reflects its commitment to solidify its position in the rapidly growing automotive tyre market. With this strategic move, CEAT aims to strengthen its presence and leverage the market potential offered by Tyresnmore’s diverse product range and service offerings.
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This investment is poised to foster a mutually beneficial partnership, driving growth and innovation in the automotive industry. CEAT’s extensive experience and Tyresnmore’s expertise in providing high-quality products and services will undoubtedly create synergies, resulting in enhanced value for both companies and their customers.
As CEAT Limited takes a significant step towards expanding its footprint in the automotive tyre sector, industry enthusiasts eagerly await the positive outcomes and future prospects arising from this strategic investment in Tyresnmore.
About CEAT:
CEAT Limited is an Indian multinational tire manufacturing company that belongs to the RPG Group. The company was founded in 1924 in Turin, Italy, and has since expanded its presence to various global markets.
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