As it plans to raise up to Rs 500 crore through various securities, tyre maker Ceat on Monday issued shares to institutional investors at a floor price of Rs 930.53 each under a QIP.

However, the total size of the Qualified Institutional Placement could not be ascertained and queries made to the company remained unanswered.

“The floor price in respect of the aforesaid QIP, based on the pricing formula as prescribed under Regulation 85(1) of the SEBI ICDR Regulations is Rs 930.53 per equity share,” Ceat said in BSE filing. The QIP was to open today, it added.

Ceat said it could offer a discount of not more than 5 per cent on the floor price so calculated for the QIP. Ceat Ltd has been allowed by the Reserve Bank to raise foreign investment, allowing overseas investors to buy up to 45 per cent of the paid up capital in the company.

Last month, the company said its Board of Directors approved an investment of Rs 420 crore for setting up a plant for manufacture of 2-3 wheeler tyres with a capacity of 120 tonnes a day.

In the same month, the company approved an investment of Rs 50 crore for implementing a project for manufacture of speciality tyres (which includes off-the-road tyres) through a subsidiary company.

In August, the company’s board had approved raising an amount not exceeding Rs 500 crore through further issue of securities including equity shares or Foreign Currency Convertible Bonds or American Depository Receipts.

As per the board approval, the firm could also raise capital via convertible debentures, non convertible debentures, preference shares convertible into equity shares or any other equity linked securities, by way of one or more public or private offerings, including qualified institutions placement.

Shares of Ceat closed at Rs 920.2 a piece, up 2.60 per cent from their previous close on BSE.

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