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.

Salem Erode Investments Limited has taken a significant step in raising funds through a private placement of debentures. The company's Board of Directors has approved the issuance of unlisted secured redeemable non-convertible debentures (NCDs) worth Rs 1.05 crore.

Key Details of the Debenture Issue

Debenture Schemes and Tenure Options

The company is offering multiple tenure options for investors:

1. 36-Month Monthly Scheme

   • Coupon Rate: 12% per annum
   • Interest Payment: Monthly

2. 36-Month Cumulative Scheme

   • Interest Payment: At maturity

3. 68-Month Cumulative Doubling Scheme

   • Interest Payment: At maturity

Security and Put Option

The debentures are fully secured against the company's current assets, loans, advances, standard gold loan receivables, and other unencumbered assets. A minimum security cover of 100% will be maintained for the outstanding balance of debentures and accrued interest.

Investors in the 36-month scheme have the option to exercise a put option, allowing for early redemption. However, this will result in an adjusted interest rate as per the terms outlined in the Private Placement Offer cum Application Letter.

Debenture Trustee and Allotment Timeline

Vistra ITCL (India) Limited has been appointed as the debenture trustee for this issue. Salem Erode Investments Limited plans to complete the allotment process within 30 days of receiving the application money from investors.

This move by the company to raise funds through secured NCDs could potentially strengthen its financial position and provide capital for its operations or expansion plans. However, investors should carefully review the terms and conditions of the offer before making any investment decisions.