Kosamattam Finance NCD opens for subscription from 08 September 2023. 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, 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; 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 June 2023, the company had a network of 989 branches. It employed 4,092 persons in its business operations. Headquartered in Kottayam in the state of 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 the purpose of onward lending.
- For repayment of interest and principal of existing debts of the company.
- General corporate purposes.
Kosamattam Finance NCD Details
| Issue Open | September 8, 2023 – September 22, 2023 |
| 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 | 20, 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 |
Options and Coupon Rates
| Option | Tenure | Interest Payment | Coupon Rate | Effective Yield | Maturity Amount |
| Series 1 | 20 months | Cumulative | NA | 8.52% | ₹ 1,146 |
| Series 2 | 24 months | Monthly | 8.75% | 9.11% | ₹ 1,000 |
| Series 3 | 30 months | Cumulative | NA | 8.85% | ₹ 1,236 |
| 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 |
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 2022 | 31 Mar 2023 |
| Assets | 4,568.89 | 5,444.34 |
| Revenue | 624.79 | 782.54 |
| Profit After Tax | 80.00 | 107.05 |
NCD Allocation Ratio
NCD Allocation Ratio
NCD’s Offered by Category
| Category | NCD’s Reserved |
|---|---|
| Institutional | 100,000 |
| Non-Institutional | 100,000 |
| HNI | 300,000 |
| Retail | 500,000 |
| Total NCD’s | 1,000,000 |
Company Promoters
- Mr. Mathew K. Cherian
- Ms. Laila Matthew
- Jilu Saju Varghese
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
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.
Happy Investing
