Kosamattam Finance NCD opens for subscription from 01 January 2024. The company aims for a base issue size of ₹100 Crores.
About the company
The company is a systemically important non-deposit-taking NBFC primarily engaged in the Gold Loan business, lending money against the pledge of household jewelry (Gold Loans) in the states of Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Delhi, Maharashtra, Gujarat, Uttar Pradesh, and Telangana along with the Union Territory of Puducherry. Its Gold Loan portfolio for financial years ending on 31 March 2023, 31 March 2022, and 31 March 2021, comprised 8,82,414; 8,10,711; and 7,18,836, respectively gold loan accounts. As of 31 March 2023, its gold loan portfolio stood at INR 4,454.08 crore which amounted to 98.68% of its total loan portfolio.
As of 30 September 2023, the company had a network of 994 branches. It employed 3,842 persons in its business operations. Headquartered in Kottayam in Kerala, the company belongs to the Kosamattam Group led by Mathew K. Cherian. It is registered with RBI as a systemically important, non-deposit-taking NBFC (Registration No. B-16.00117 dated 19 December 2013) under Section 45 IA of the RBI Act. Further, it also has a Full-Fledged Money Changers (FFMC) license bearing number FE.CHN.FFMC.40/2006 dated 7 February 2006, valid until 28 February 2025.
Objectives of the Issue
- For onward lending.
- For repayment of interest and principal of existing debts of the company.
- For general corporate purposes.
Kosamattam Finance NCD Details
| Issue Open | January 1, 2024 – January 12, 2024 |
| Security Name | Kosamattam Finance Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | ₹ 100.00 Crores |
| Issue Size (Shelf) | ₹ 200.00 Crores |
| Issue Price | ₹ 1000 per NCD |
| Face Value | ₹ 1000 for each NCD |
| Minimum Lot Size | 10 NCD |
| Market Lot | 1 NCD |
| Listing At | BSE |
| Credit Rating | IND A-/Stable by India Ratings |
| 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 Trustee/s | Vistra Itcl India Limited |
Kosamattam Finance NCD Options and Coupon Rates
| Option | Tenure | Interest Payment | Coupon Rate | Effective Yield | Maturity Amount |
| Series 1 | 18 months | Cumulative | NA | 8.52% | ₹ 1,130.50 |
| Series 2 | 24 months | Monthly | 8.75% | 9.11% | ₹ 1,000 |
| Series 3 | 30 months | Cumulative | NA | 9.00% | ₹ 1,240 |
| Series 4 | 36 months | Monthly | 9.25% | 9.65% | ₹ 1,000 |
| Series 5 | 39 months | Cumulative | NA | 9.25% | ₹ 1,333 |
| Series 6 | 48 months | Monthly | 10.00% | 10.47% | ₹ 1,000 |
| Series 7 | 54 months | Cumulative | NA | 9.43% | ₹ 1,500 |
| Series 8 | 88 months | Cumulative | NA | 9.91% | ₹ 2,000 |
Kosamattam Finance NCD Rating
The NCDs proposed to be issued under this Issue have been rated ‘IND A-/Stable’, by India Ratings & Research Private Limited.
Company Financials
| Period Ended | 31 Mar 2023 | 31 Mar 2022 |
| Assets | 5,444.34 | 4,568.89 |
| Revenue | 782.54 | 624.79 |
| Profit After Tax | 107.05 | 80.00 |
Kosamattam Finance NCD Allocation Ratio
Company Promoters
- Mathew K. Cherian
- Laila Mathew
- Jilu Saju Varghese
Kosamattam Finance NCD Lead Manager
SMC CAPITALS LIMITED
A-401/402, Lotus Corporate Park,
Off Western Express Highway,
Jai Coach Signal, Goregaon (East),
Mumbai – 400063, Maharashtra
Phone: +91 22 66481818
Email: kfl.ncd@smccapitals.com
Website: www.smccapitals.com
Kosamattam Finance NCD Registrar
KFIN TECHNOLOGIES LIMITED
Selenium Tower B, Plot No – 31 & 32,
Financial District, Nanakramguda,
Serilingampally, Hyderabad Rangareddi,
500 032, Telangana, India
Phone: +91 40 6716 2222
Email: kosamattam.ncd@kfinech.com
Website: www.kfintech.com
Company Contact Details
KOSAMATTAM FINANCE LIMITED
Kosamattam City Centre,
Floor Number 4th & 5th, T.B Road,
Kottayam – 686001, Kerala
Phone: +91 481 258 6400
Email: cs@kosamattam.com
Website: www.kosamattam.com
Final Thoughts
Non-convertible debentures (NCDs) 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 decision.
Happy Investing
