Kosamattam Finance NCD will open for subscription from 14 December 2022. the company aims for a base issue size of ₹200 Crores.
About the company
Kosamattam Finance Ltd is a non-deposit-taking NBFC that is primarily engaged in the business of Gold Loan, lending money against pledges of household Jewellery in Kerala, Karnataka, Tamil Nadu, Andhra Pradesh, Maharashtra, Delhi, Gujarat, and Telangana along with Union Territory of Puducherry. In addition to the gold loan, it also offers fee-based ancillary services such as microfinance, money transfer services, power generation, foreign currency exchange, agriculture, and air ticketing services. As of October 31, 2022, it has a network of 997 branches with a significant market presence in Southern India.
Major Competitive strengths
- Part of Kosamattam Group, one of the leading financial service groups in South India.
- Branch network in rural and semi-urban areas in South India.
- Organized and efficient IT infrastructure.
- Experienced management team and skilled personnel.
Objectives of the Issue
- For the purpose of onward lending.
- For repayment of interest and principal of existing debts of the Company.
- For general corporate purposes.
Kosamattam Finance NCD Dec 2022 Details
| Issue Open | Dec 14, 2022 – Jan 13, 2023 |
| Security Name | Kosamattam Finance Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | Rs 200.00 Crores |
| Issue Size (Shelf) | Rs 200.00 Crores |
| Issue Price | Rs 1000 per NCD |
| Face Value | Rs 1000 each NCD |
| Minimum Lot size | 10 NCD |
| Market Lot | 1 NCD |
| Listing At | BSE |
| Credit Rating | IND A-/Stable |
| Tenor | 18, 24, 30, 36, 39, 48, 54 and 88 Months |
| Series | Series I to VIII |
| Payment Frequency | Monthly and Cumulative |
| Basis of Allotment | First Come First Serve Basis |
| Debenture Trusties | VISTRA ITCL INDIA LIMITED |
Coupon Rates
| Series 1 | Series 2 | Series 3 | Series 4 | Series 5 | Series 6 | Series 7 | Series 8 | |
|---|---|---|---|---|---|---|---|---|
| Frequency of Interest Payment | Cumulative | Monthly | Cumulative | Monthly | Cumulative | Monthly | Cumulative | Cumulative |
| Nature | Secured | Secured | Secured | Secured | Secured | Secured | Secured | Secured |
| Tenor | 18 Months | 36 months | 30 months | 36 months | 39 months | 48 months | 54 months | 88 months |
| Coupon Rate | NA | 8.50% | NA | 9.00% | NA | 9.50% | NA | NA |
| Effective Yield (% per Annum) | 8.00% | 8.57% | 8.49% | 9.38% | 9.25% | 9.92% | 9.43% | 9.91% |
| Amount on Maturity | Rs 1,122.40 | Rs 1,000 | Rs 1,226 | Rs 1,000 | Rs 1,333 | Rs 1,000 | Rs 1,500 | Rs 2,000 |
NCD Rating
The NCDs proposed to be issued under this Issue have been rated ‘IND A-/Stable’, by India Ratings & Research Private Limited (“India Ratings”).
Company Financials
| Period Ended | Total Assets | Total Revenue | Profit After Tax | Net Worth |
|---|---|---|---|---|
| 31-Mar-20 | 3297.45 | 499.33 | 47.66 | 420.44 |
| 31-Mar-21 | 4006.16 | 541.84 | 65.25 | 520.56 |
| 31-Mar-22 | 4544.1 | 624.79 | 78.92 | 657 |
NCD Allocation Ratio
NCD’s Offered by Category
| Category | NCD’s Reserved |
|---|---|
| Institutional | 200,000 |
| Non-Institutional | 200,000 |
| HNI | 600,000 |
| Retail | 1,000,000 |
| Total NCD’s | 2,000,000 |
Company Promoters
- Mathew K. Cherian
- Laila Mathew
- Jilu Saju Varghese
Lead Manager(s)
- SMC Capitals Limited
Kosamattam Finance NCD Registrar
KFin Technologies Limited
KFintech, Tower-B, Plot No 31 & 32,
Financial District, Nanakramguda, Gachibowli,
Hyderabad, Telangana India – 500 032.
Phone: 04067162222, 04079611000
Email: ibhl.ncdipo@kfintech.com
Website: https://karisma.kfintech.com/
Company Contact Information
Kosamattam City Centre,
Floor Number 4th & 5th,
T.B Road, Kottayam – 686001, Kerala
Phone: +91 481 258 6400
Email: cs@kosamattam.com
Website: http://www.kosamattam.com/
Final Thoughts
Non Convertible Debentures (NCD) are a better investment option for those who are looking for a diversified portfolio. investing in Kosamattam Finance NCD is purely your personal choice. make a good study and analysis before you make the investment.
Happy Investing
