Salem Erode Investments Ltd Approves Issuance of Rs 1.5 Crore in Secured Non-Convertible Debentures
Salem Erode Investments Limited has announced that its Board of Directors approved the issuance of Unlisted Secured Redeemable Non-Convertible Debentures totaling Rs 1,50,00,000 through a private placement mechanism. The decision followed a board meeting held on June 22, 2026.The Company is issuing 15,000 debentures, each with a face value of Rs 1,000, for cash at par. These instruments are non-convertible and will not be listed on any stock exchanges. The issuance was structured as a private placement offering.
Key Details of the Debenture Offering
The approved issue includes multiple tenure options to suit investors, including 36 months and 68 months. The debentures are fully secured against the Company's assets, with a minimum security cover of 100% of the outstanding balance plus accrued interest. Vistra ITCL (India) Limited is designated as the Debenture Trustee.The financial terms for the different tenure schemes were outlined by the Board.
| Scheme | Tenure | Coupon Rate | Payment Schedule |
|---|---|---|---|
| Monthly Scheme | 36 Months | 12.00% | Payable on the first day of every month |
| Cumulative Scheme | 36 Months | NA | Payable on Maturity |
| Cumulative Scheme | 68 Months | NA | Payable on Maturity |
The offering includes a Put Option, which is available exclusively for the 36-month schemes. According to the terms, if the Debenture Holder exercises this option, the interest rate will be reduced as per the conditions specified in the Private Placement Offer cum Application Letter.
Redemption of these debentures is scheduled only at the Maturity date unless a put option is exercised by the Debenture Holder prior to that date. The Company affirmed that no matters adverse affecting the security or the assets of the company have occurred as of the offering date.
Stock Price Movement
Salem Erode Investments Ltd shares settled on Monday at ₹40.90, closing a strong day after climbing 7.07%. The stock navigated an intraday range that saw prices oscillate between a low of ₹40.90 and a high of ₹44.00.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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