Salem Erode Investments has allotted unlisted secured redeemable non-convertible debentures (NCDs) aggregating to ₹3,69,50,000 on a private placement basis. The Debenture and Bond Committee of the Board of Directors approved the allotment during a meeting held on August 01, 2026. This capital raise strengthens the financial link between the subsidiary and its holding company, ICL Fincorp Limited, which subscribed to the majority of the issue.

The committee approved the allotment of 36,950 debentures, each with a face value of ₹1,000. The total value of the issuance stands at ₹3,69,50,000. The transaction was executed in compliance with Regulation 30 read with Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Allotment Details

ICL Fincorp Limited, the holding company of Salem Erode Investments, was allotted NCDs aggregating to ₹3,00,00,000. The remaining portion of the issuance, amounting to ₹69,50,000, was allotted to other subscribers under the private placement framework. The document does not specify the coupon rate or maturity tenor for these instruments.

Committee Proceedings

The Debenture and Bond Committee convened on August 01, 2026, to finalize the allotment process. The meeting commenced at 02:00 P.M. IST and concluded at 02:30 P.M. IST. Visakh T V, Company Secretary of Salem Erode Investments, certified the outcome of the meeting. The company has submitted the disclosure to BSE Limited pursuant to regulatory requirements.

What the Numbers Show

The concentration of the allotment within the group structure is notable. With ₹3,00,00,000 of the ₹3,69,50,000 total issuance going to ICL Fincorp Limited, approximately 81% of the debt instrument was absorbed by the holding company. This suggests the primary objective of the private placement is internal capital structuring rather than raising funds from external third-party investors. The secured nature of the debentures indicates that specific assets or collateral back this liability, providing a layer of security for the holding company’s investment.

Salem Erode Investments Limited has approved the issuance of Secured Redeemable Non-Convertible Debentures (NCDs) aggregating Rs 4,00,00,000 on a private placement basis. The Board of Directors sanctioned the issue of 40,000 unlisted secured NCDs with a face value of Rs 1,000 each at par during a meeting held on July 23, 2026. This capital raise aims to meet the company's financial requirements through debt instruments secured against its assets.

The debentures will be offered in two distinct tenure options: 36 months and 68 months. The 36-month tenure includes a Monthly Scheme with a coupon rate of 12.00%, payable on the first day of every month, and a Cumulative Scheme where payment is made at maturity. The 68-month option is a Cumulative Scheme designed to double the investment, with payment also due at maturity. A put option is available for the 36-month schemes, allowing holders to exit early under specific terms.

Key Details of the NCD Issue

The proposed issue is fully secured against current assets, loans, advances, and standard gold loan receivables, among other unencumbered assets, excluding fixed assets. The security cover will be at least 100% of the outstanding balance and accrued interest. A charge will be created in favour of Vistra ITCL (India) Limited, acting as the Debenture Trustee. Allotment is scheduled to be completed within 30 days from the date of receipt of application money.

Disclosures regarding the issuance were made in accordance with the master circular issued by the Securities and Exchange Board of India. Salem Erode Investments Limited operates as a subsidiary of ICL Fincorp Ltd. The meeting, which commenced at 03:00 P.M. and concluded at 04:15 P.M. on July 23, 2026, was held to finalize these funding proposals.