Kosamattam Finance NCD is opening for subscription on 23rd December 2020. NCD interest rates are up to 10.25% and the yield works out to be 10.75%. the company offers these bonds for the tenure of 400 days to 84 months.
Kosamattam Finance Ltd
The company Incorporated in 1987, Kerala based Kosamattam Finance Limited is a non-deposit taking NBFC and works as a gold loan provider against the household gold jewelry across some states in India. The company has a reach in the Union Territory of Puducherry, Maharashtra, Delhi, Andhra Pradesh, Karnataka, Telangana, Gujarat, Tamil Nadu, and Kerala.
Kosamattam Finance Limited is registered with RBI as an NBFC and also has a Full-Fledged Money Changers (FFMC) license. The company also holds a certificate of registration to work as a Depository Participant and Corporate Agent. The gold loan is the primary business of the company. The company also provides other miscellaneous services such as air ticketing, agriculture, power generation, foreign currency exchange, money transfer, and microfinance services.
Competitive strengths
- Good network across some Indian states.
- An effective risk management system.
- Efficient IT Infrastructure in branches.
- Strong customer base.
Objectives of the Issue
- For the purpose of onward lending.
- repayment of interest and principal of existing debts of the Company.
- For general corporate purposes.
Kosamattam Finance NCD Details
| Issue Open | 23 Dec 2020 |
| Issue Closing | 19 Jan 2021 |
| Security Name | Kosamattam Finance Ltd |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Base Issue Size | ₹ 175Crores |
| Issue Size (Shelf) | ₹ 175 Crores |
| Total Issue size | ₹175 Crores |
| Issue Price | ₹ 1000 per NCD |
| Face Value | ₹ 1000 for each NCD |
| Minimum Lot size | 10 NCD |
| Market Lot | 1 NCD |
| Credit Rating | BWR BBB+/Stable |
| Tenor | 400 Days and 30/39/48/66/84 Months |
| Payment Frequency | Monthly and Cumulative |
| Basis of Allotment | First Come First Serve Basis |
| Listing At | BSE |
NCD’s Offered by category
| Category | NCD’s Reserved |
|---|---|
| Category 1 (QIB) | 175,000 |
| Category 2 (NII) | 175,000 |
| Category 3 (HNI) | 525,000 |
| Category 4 (RII) | 875,000 |
| Total NCD’s | 1,750,000 |
Financial summary
| Particulars | For the year/period ended (₹ in lakhs) | |
|---|---|---|
| 31-Mar-20 | 31-March-19 | |
| Total Assets | 3,31,795.52 | 2,97,204.24 |
| Total Revenue | 49,849.12 | 47,554.47 |
| Profit After Tax | 4,763.01 | 4,314.63 |
Coupon Rates
Series 1 | Series 2 | Seris 3 | Seris 4 | Seriess 5 | Series 6 | Seriess 7 | Seris 8 | |
|---|---|---|---|---|---|---|---|---|
| Frequency of Interest Payment | Cumulative | Monthly | Cumulative | Monthly | Cumulative | Cumulative | Monthly | Cumulative |
| Tenor | 400 Days | 30 Months | 30 Months | 39 Months | 48 Months | 66 Months | 84 Months | 84 Months |
| Coupon Rate (Retail) | NA | 9.25% | NA | 10% | NA | NA | 10.25% | NA |
| Effective Yield (Per year) | 8.50% | 9.65% | 9.34% | 10.47% | 10.67% | 10.71% | 10.75% | 10.41% |
| Amount on Maturity | 1,093.50 | 1,000 | 1,250 | 1,000 | 1,500 | 1,750 | 1,000 | 2,000 |
Kosamattam Finance NCD Lead Managers
- Karvy Investor services ltd
- SMC capitals ltd
Kosamattam Finance NCD Debenture Trustee
VISTRA ITCL (INDIA) LIMITED
The IL&FS Financial Center, Plot No. C
– 22, G Block, Bandra Kurla Complex
Bandra (East), Mumbai – 400 051
Maharashtra, India
Tel: +91 22 2659 3333 Fax: +91 22 2653 3297
Website: www.vistraitcl.com
Kosamattam Finance NCD Registrar
KARVY FINTECH PRIVATE LIMITED
Karvy Selenium, Tower B, Plot 31-32,
Financial District, Nanakramguda,
Serilingampally, Rangareddy
Hyderabad – 500 032, Telangana
Tel: +91 40 6716 2222
Fax: +91 40 2343 1551
Website: www.karvyfintech.com
Final Thoughts
Non Convertible Debentures (NCD) is 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