Salem Erode Investments Limited announced that its Board of Directors has approved the issuance of unlisted secured redeemable non-convertible debentures worth ₹13.00 crores. The board meeting, held on December 23, 2025, commenced at 11:00 A.M. (IST) and concluded at 12:00 P.M. (IST), where directors considered and approved this significant fundraising initiative.

Debenture Issue Details

The company has approved the issuance of 13,000 unlisted secured redeemable non-convertible debentures with specific parameters designed to attract investors across different risk and return preferences.

Investment Schemes and Tenure Options

The debentures offer multiple investment schemes catering to different investor preferences, with tenure options ranging from 36 to 68 months.

Monthly Scheme - 36 Months

• Coupon Rate: 12.00%
• Payment Schedule: Payable on first day of every month
• Put Option: Available with terms specified in Private Placement Offer cum Application Letter

Cumulative Scheme - 36 Months

• Coupon Rate: Not applicable
• Payment Schedule: Payable on maturity
• Put Option: Available with specified terms and conditions

Cumulative Scheme - 68 Months (Doubling)

• Coupon Rate: Not applicable
• Payment Schedule: Payable on maturity
• Investment Feature: Doubling scheme structure

Security and Collateral Framework

The proposed debenture issue incorporates comprehensive security measures to protect investor interests. The debentures are fully secured against current assets, loans and advances, including standard gold loan receivables, and other unencumbered assets of the company, excluding fixed assets, both present and future.

Allotment and Maturity Timeline

The company has established clear timelines for the allotment process and maturity dates. Allotment shall be completed within 30 days from the date of receipt of application money. The date of maturity falls based on the selection of tenure schemes, either 36 months or 68 months from the date of allotment of debentures.

Redemption of debentures will be made only at the maturity date unless put option is exercised by the debenture holder before maturity as per the terms and conditions specified in the Private Placement Offer cum Application Letter. The company will issue Private Placement Offer cum Application Letter in form PAS-4 covering details and financial summary of the company.

Regulatory Compliance

The disclosure has been made in accordance with master circular no. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024 issued by the Securities and Exchange Board of India. The company has confirmed that no matters adversely affecting the security and/or the assets of the company have occurred as on the date of the board meeting. Additionally, there have been no delays in payment of interest/principal amount for a period of more than three months from the due date or default in payment of interest/principal.

Salem Erode Investments Limited has successfully raised Rs 84.30 lakh through the allotment of non-convertible debentures (NCDs) on a private placement basis. This move strengthens the company's financial position and demonstrates its ability to attract investment in the current market environment.

Key Details of the NCD Allotment

Significance of the Move

The successful placement of these NCDs indicates investor confidence in Salem Erode Investments Limited. By opting for a private placement, the company has likely targeted specific investors, possibly aiming for a quicker and more streamlined fundraising process.

Regulatory Compliance

As per the regulatory filing, the company has adhered to the necessary disclosure requirements under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. This transparency is crucial for maintaining investor trust and complying with market regulations.

Potential Use of Funds

While the specific use of the funds raised has not been disclosed, companies typically use such capital for various purposes, including:

• Expansion of business operations
• Refinancing existing debt
• Working capital requirements
• Investment in new projects or technologies

Investors and market analysts will be keen to see how Salem Erode Investments utilizes this additional capital to drive growth and enhance shareholder value in the coming months.

As the financial landscape continues to evolve, such strategic moves by companies to raise capital through diverse instruments like NCDs reflect their adaptability and financial planning acumen in meeting their funding needs.