Salem Erode Investments Limited has approved the issuance of unlisted secured redeemable non-convertible debentures (NCDs) aggregating ₹13 crore through a private placement. The approval was granted at a meeting of the Board of Directors held on December 23, 2025, which took place between 11:00 A.M. and 12:00 P.M. (IST).
The fundraise involves the issuance of 13,000 debentures with a face value of ₹1,000 each. The debentures will be issued in one or more tranches and will remain unlisted.
Debenture Issue Structure
The approved issue comprises secured, redeemable, non-convertible debentures with an aggregate value of ₹13.00 crore. The private placement structure allows the company to offer multiple investment schemes with varying tenures.
Key issue details include:
- Number of Debentures: 13,000
- Face Value: ₹1,000 per debenture
- Total Issue Size: ₹13.00 crore
- Issue Type: Private placement
- Listing Status: Unlisted
- Issuance: One or more tranches
Investment Schemes and Tenure
The debenture issue provides different scheme options with tenures ranging from 36 months to 68 months.
Under the 36-month monthly payout scheme, the debentures carry a coupon rate of 12.00%, with interest payable on the first day of every month. A put option is available in accordance with the terms specified in the Private Placement Offer cum Application Letter.
The cumulative scheme with a 36-month tenure does not provide periodic interest payments, with returns payable at maturity. A put option is also available under this structure.
In addition, a 68-month cumulative scheme has been approved, structured as a doubling option, where repayment is made at maturity.
Security and Trustee Arrangement
The debentures are fully secured with a minimum security cover of 100% of the outstanding balance. Security will be created over the company’s current assets, loans and advances, including standard gold loan receivables, and other unencumbered assets, both present and future. Fixed assets are excluded from the security pool.
Vistra ITCL (India) Limited has been appointed as the debenture trustee, with the charge on assets to be created in its favour.
Allotment and Redemption
Allotment of the debentures will be completed within 30 days from the date of receipt of the application money. The maturity of the debentures will be determined based on the selected tenure, either 36 months or 68 months from the date of allotment.
Redemption will take place only at maturity unless the debenture holder exercises the put option in accordance with the applicable terms. The company will issue the Private Placement Offer cum Application Letter in Form PAS-4, detailing the offer terms and financial information.
Regulatory Disclosure
The disclosure has been made in compliance with the Securities and Exchange Board of India master circular dated November 11, 2024. The company has stated that, as of the date of the board meeting, no events have occurred that adversely affect the security or assets backing the debentures. It has also confirmed the absence of any delays or defaults in payment of interest or principal exceeding three months.
Summary
Salem Erode Investments Limited has approved a ₹13 crore private placement of unlisted secured redeemable non-convertible debentures comprising 13,000 units of ₹1,000 each. The issue offers multiple schemes with tenures of 36 and 68 months, carries a 12% coupon under the monthly payout option, and is fully secured with a minimum 100% security cover, with Vistra ITCL appointed as debenture trustee.
Disclaimer:
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