Salem Erode Investments Announces Rights Issue of Rs 23 Crore

Issue size stands at 1.14 crore shares with an entitlement ratio of 1:1 for existing investors.

Reader Takeaway: Existing shareholders get a 1:1 right to subscribe at Rs 20; record date is September 3, 2026.

What just happened

The Board of Directors of Salem Erode Investments Ltd approved a rights issue to raise Rs 22.93 crore. The company will issue up to 1,14,65,520 equity shares at a price of Rs 20 per share, which includes a premium of Rs 19 per share over the face value of Re 1.

Rights Issue Details

Existing shareholders as of the record date of September 3, 2026, are entitled to receive one new share for every existing share held. The issue is scheduled to open on September 15, 2026, and close on September 25, 2026. The final allotment and credit of shares are expected by September 29, 2026.

Why this matters

This capital infusion is intended to support the company's growth and financial needs. For retail investors, the rights issue provides an opportunity to increase their stake in the company at a fixed price. Investors should ensure their records are updated before the September 3 deadline to be eligible for the subscription.

What to track next

The company has finalized the documentation for submission to the BSE and SEBI. Trading for the rights entitlements will be available on the market until September 21, 2026. The company’s trading window, which closed on August 25, will reopen 48 hours after this announcement.