Approval of issue of 5,500 (Five Thousand Five Hundred Only) Unlisted Secured Redeemable Non-Convertible Debentures of face value of Rs.1000/- (Rupees One Thousand Only) each for cash at ....
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Awaiting price reaction for this filing.
Salem Erode Investments Ltd's Board approved issuing 5,500 unlisted secured redeemable non-convertible debentures (NCDs) at Rs. 1,000 each, raising Rs. 55 lakhs in total on a private placement basis. The NCDs come in two tenures — 36 months and 68 months — with the 36-month monthly scheme offering a 12% annual coupon, while the cumulative schemes pay principal plus returns at maturity (doubling in the 68-month option). The issue is fully secured against current assets, loans and advances including standard gold loan receivables, with a minimum 100% security cover in favour of debenture trustee Vistra ITCL (India) Ltd. The NCDs will not be listed on any stock exchange and will be allotted within 30 days of receiving application money.
The raise is relatively small (Rs. 55 lakhs) and is being privately placed with select investors, so it is unlikely to materially move the stock price. However, the 12% coupon makes these NCDs attractive for yield-seeking investors, and the use of gold loan receivables as security highlights the company's exposure to gold financing.