Board approves 1.5 crore NCD issue at 12 percent coupon rate

Ncd High Yield 12pctFund Raising View source PDF

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AI summary

The Board of Salem Erode Investments approved issuing 15,000 unlisted secured redeemable NCDs at Rs 1,000 each, aggregating Rs 1.5 crore, via private placement. Two tenures are offered: 36 months and 68 months. The 36-month monthly income scheme carries a 12 percent annual coupon, paid monthly, while cumulative schemes pay principal and interest at maturity. NCDs are secured against current assets, loans, advances, and gold loan receivables, with a 100 percent security cover in favour of trustee Vistra ITCL India. Listing is not proposed.

Likely market impact

Small fundraise of Rs 1.5 crore via high-yield NCDs secured against company assets. No equity dilution as these are non-convertible debentures.