Salem Erode Investments Ltd Approves Private Placement of Unlisted Secured Debentures
Salem Erode Investments Limited has approved the issuance of a tranche of Unlisted Secured Redeemable Non-Convertible Debentures (NCDs) through a private placement basis, following its Board meeting held on July 23, 2026.The Company decided to issue 40,000 Unlisted Secured Redeemable Non-Convertible Debentures, each with a face value of Rs. 1,000/- for cash at par. The total aggregate size of the issue is Rs. 4,00,00,000/- (Rupees Four Crore only).
The debenture issuance was structured as a private placement offering and will be offered in one or more tranches. Allotment for these securities must be completed within 30 days from the date of receipt of application money. The Company has decided that the proposed issue would not be listed on any stock exchange.
Details regarding the issuance, security, and tenure of the debentures are summarized below:
| Feature | Details |
|---|---|
| Security Type | Unlisted Secured Redeemable Non-Convertible Debentures |
| Issuance Method | Private Placement |
| Total Securities | 40,000 NCDs (Face value Rs. 1,000/- each) |
| Issue Size | Rs. 4,00,00,000/- |
| Security Charge | The issue is fully secured against current assets, loans and advances, standard gold loan receivables, and other unencumbered assets of the Company (excluding fixed assets). |
Debenture Tenure and Terms
Salem Erode Investments Ltd offered the debentures across different tenures with specific repayment structures.The terms for the NCDs include:
| Scheme Type | Tenure | Coupon Rate | Schedule Details |
|---|---|---|---|
| Monthly Scheme | 36 Months | 12.00% | Payable on the first day of every Month. |
| Cumulative Scheme | 36 Months | Not Applicable (NA) | Payable on Maturity. |
| Cumulative Scheme | 68 Months (Doubling) | Not Applicable (NA) | Payable on Maturity. |
A Put Option is available for the 36-month schemes, allowing debenture holders to exercise it according to the terms outlined in the Private Placement Offer cum Application Letter. On the exercise of this put option, the interest rate will be reduced as defined in the offering documents.
The redemption of the Debentures is scheduled only at the Maturity date unless the Put Option is exercised by the Debenture Holder prior to maturity. The proposed issue has been secured against current assets and other unencumbered assets of the Company, ensuring a minimum security cover of 100% of the outstanding balance of Debentures and accrued interest thereon.
Stock Price Movement
Salem Erode Investments Ltd. settled at ₹33.50 at the close of trade today, falling 11.38%.The shares saw a volatile session in the market, testing an intraday low of ₹33.40 after previously reaching a high of ₹36.00.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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