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.

Salem Erode Investments Limited reported a net loss of ₹484.66 lacs for the financial year ended March 31, 2026, widening from the net loss of ₹471.93 lacs in the previous year. Total income for the year declined to ₹356.67 lacs from ₹390.77 lacs in FY25, while total expenses reduced to ₹852.87 lacs from ₹885.89 lacs. The statutory auditors issued an unmodified opinion on the standalone financial results, which were approved by the board at its meeting held on May 26, 2026.

The company published the audited standalone financial results for the quarter and financial year ended March 31, 2026, in newspapers "The New Indian Express" and "Dinamani" on May 27, 2026, pursuant to Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing was submitted to BSE Limited.

Financial Performance

The company recorded a loss before tax of ₹496.19 lacs for FY26, compared to a loss of ₹495.12 lacs in the previous year. For the quarter ended March 31, 2026, the net loss stood at ₹139.86 lacs. Basic and diluted earnings per share for the year were reported at a loss of ₹4.23 per share. The company maintained full asset cover by way of hypothecation of all loan receivables and advances on its secured unlisted redeemable non-convertible debentures as at March 31, 2026.

Asset and Liability Position

Total assets as at March 31, 2026, stood at ₹3,236.30 lacs, a decrease from ₹3,643.53 lacs in the previous year. Cash and cash equivalents dropped significantly to ₹70.29 lacs from ₹555.80 lacs. Loans and advances grew to ₹1,718.76 lacs from ₹1,353.84 lacs. On the liabilities side, borrowings (other than debt securities) were recorded at ₹200.00 lacs, while debt securities stood at ₹1,112.08 lacs. Equity share capital remained unchanged at ₹114.66 lacs.