Intimation of revision in Credit Rating
Price
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Awaiting price reaction for this filing.
CRISIL has assigned a credit rating of 'CRISIL BB/Stable' to Salem Erode Investments Limited for its Rs 50 crore Bank Loan Facility and Rs 50 crore Non-Convertible Debentures, totaling Rs 100 crore. This is a fresh rating assignment with no prior rating history on record. SEIL is a small BSE-listed NBFC primarily into gold loan financing, operating 38 branches in Tamil Nadu and Odisha under the ICL Fincorp group (which holds 75% stake). The BB/Stable rating factors in expected parent support and adequate capital (Capital Adequacy Ratio of 63.97%), but is weighed down by weak financials — FY25 losses widened to Rs 4.95 crore from Rs 1.8 crore, loan book shrank to Rs 13.5 crore from Rs 16.8 crore, and Gross NPAs rose to 2.93% from 2.46%. Liquidity is adequate with 1.9x cover for the next 3 months.
The CRISIL BB rating falls in the speculative (non-investment grade) category, reflecting elevated credit risk despite parental backing. For shareholders, this signals business stress — mounting losses, a shrinking loan book, and rising NPAs — which may weigh on the stock's perception, though parent support from ICL Fincorp provides a floor.