28-Dec-2023
2 mins read
Kosamattam Finance, a prominent non-banking financial company (NBFC) in India, is set to launch secured non-convertible debt (NCD) bonds. The subscription for these bonds will open on January 1, 2024. The NCDs from Kosamattam Finance offer interest rates of up to 10% and a yield of up to 10.47%. Investors can choose from a range of tenures varying from 20 to 88 months. Additionally, the interest on these NCDs can be received either monthly or upon maturity.
About Company
Kosamattam Finance Limited operates as a non-deposit, Non-Banking Financial Company (NBFC), primarily focusing on Gold Loan services. The company is part of the Kosamattam Group, under the leadership of Mathew K. Cherian, and is based in Kottayam, Kerala. Kosamattam Finance provides loans against household jewellery to a diverse clientele, including businessmen, vendors, traders, farmers, salaried individuals, and families across several regions: Kerala, Karnataka, Tamil Nadu, Andhra Pradesh, Maharashtra, Delhi, Gujarat, Telangana, and the Union Territory of Puducherry.
In addition to its gold loan business, Kosamattam Finance offers ancillary fee-based services, including microfinance, money transfer, power generation, foreign currency exchange, agriculture, and air ticketing services. As of September 30, 2023, the company has established a strong presence with 994 branches spread across eight states and one union territory.
Financial Performance (Amount in Rs Crore)
Kosamattam Finance Limited’s revenue increased by 25.25%, and profit after tax (PAT) rose by 33.82% between the financial year ending March 31, 2023, and March 31, 2022.
| Period Ended | 31-Mar-23 | 31-Mar-22 |
| Assets | 5,444.34 | 4,568.89 |
| Revenue | 782.54 | 624.79 |
| Profit After Tax | 107.05 | 80 |
| Net Worth | ||
| Reserves and Surplus | ||
| Total Borrowing |
Kosamattam Finance NCD January 2024 Detail
| 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) | Rs 100.00 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 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 Allocation Ratio
| Category | NCD’s Allocated |
| Institutional | 10% |
| Non-Institutional | 10% |
| HNI | 30% |
| Retail | 50% |
Kosamattam Finance Limited NCD 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 | 24 Months | 30 Months | 36 Months | 39 Months | 48 Months | 54 Months | 88 Months |
| Coupon (% per Annum) | NA | 8.75% | NA | 9.25% | NA | 10.00% | NA | NA |
| Effective Yield (% per Annum) | 8.52% | 9.11% | 9.00% | 9.65% | 9.25% | 10.47% | 9.43% | 9.91% |
| Amount on Maturity (In Rs.) | Rs 1,130.50 | Rs 1,000.00 | Rs 1,240.00 | Rs 1,000.00 | Rs 1,333.00 | Rs 1,000.00 | Rs 1,500.00 | Rs 2,000.00 |
Credit ratings of Kosamattam Finance NCD
These NCDs have been rated as IND A-/Stable by India Ratings, which indicates that instruments with this rating are considered to have an adequate degree of safety regarding the timely servicing of financial obligations. Such instruments carry low credit risk.
The Objective of the Issue
Kosamattam Finance Limited plans to allocate the net proceeds from its latest issuance primarily for three key objectives. Firstly, a significant portion will be directed towards onward lending, supporting the expansion of their loan portfolio. Secondly, the funds will be used to repay the principal and interest on the company’s existing debts, aiding in financial management and debt reduction. Lastly, a part of the proceeds will be reserved for general corporate purposes, enabling the company to meet various operational and strategic needs.
Kosamattam Finance NCD January 2024 Lead Manager
The Lead Manager for Kosamattam Finance NCD is Smc Capitals Limited.
How to Apply
Wait for the NCD to open for subscription, then click on this link to apply for the Kosamattam Finance Limited with Bigul: https://ncd.bonanzaonline.com/.
How to Check Allotment Status
The registrar for Kosamattam Finance Limited is Kfin Technologies Limited. To check your allotment status, please click on this link https://kosmic.kfintech.com/ipostatus/
FAQs
- What are the key details of the Kosamattam Finance NCD January 2024 issue?
The Kosamattam Finance NCD issue opens on January 1, 2024, and closes on January 12, 2024. These are secured, redeemable, non-convertible debentures with an issue size of Rs 100 Crores, expandable to Rs 200 Crores. The NCDs have a face value of Rs 1000 each, with a minimum lot size of 10 NCDs.
- What are the interest rates and tenors offered by Kosamattam Finance NCD?
Kosamattam Finance NCD offers varying interest rates of up to 10% per annum, with tenors ranging from 18 to 88 months. The NCDs come in eight series, with interest payment frequencies being either monthly or cumulative.
- How can one apply for Kosamattam Finance Limited NCD?
When the subscription opens, investors can apply for the NCDs by visiting the link: Kosamattam Finance Limited NCD Application.
- How is the credit quality of Kosamattam Finance NCD?
The NCDs have been rated IND A-/Stable by India Ratings, indicating adequate safety and low credit risk.
- What is the purpose of the Kosamattam Finance NCD issue?
The net proceeds from the NCD issue will primarily be used for onward lending, repaying existing debts, and for general corporate purposes, aiding in portfolio expansion and financial management.