Salem Erode Investments has allotted 9,200 unlisted secured redeemable non-convertible debentures on a private placement basis for an aggregate amount of ₹92,00,000. The Debenture and Bond Committee of the Board of Directors approved the allotment on July 01, 2026. Each debenture carries a face value of ₹1,000.

Allotment Details

The committee's decision was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The allotment was finalized during the meeting held on July 01, 2026.

Salem Erode Investments Limited has approved the issuance of secured redeemable non-convertible debentures (NCDs) aggregating to Rs 1.50 crore on a private placement basis. The board's decision, taken on June 22, 2026, aims to raise capital through 15,000 unlisted debentures with a face value of Rs 1,000 each. The issue will be conducted in one or more tranches and is fully secured against the company's current assets, excluding fixed assets.

The debentures are offered in two tenure options: 36 months and 68 months. The 36-month option includes a Monthly Scheme with a 12.00% coupon rate 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 due at maturity. Allotment will be completed within 30 days from the date of receipt of application money.

Key Details of the NCD Issue

The proposed issue is secured against current assets, loans and advances, including standard gold loan receivables, and other unencumbered assets of the company. A charge will be created in favour of Vistra ITCL (India) Limited, acting as the Debenture Trustee, ensuring a minimum security cover of 100% of the outstanding balance and accrued interest. The company will issue a Private Placement Offer cum Application Letter in form PAS 4 covering details and financial summary.

Put options are available for the 36-month schemes, allowing debenture holders to exercise the option as per the terms and conditions of the offer. However, if the put option is exercised, the interest rate will be reduced accordingly. Redemption of debentures will occur only at the maturity date unless the put option is exercised before maturity. The disclosures were made in accordance with the Securities and Exchange Board of India master circular.