NCD Issue Opens on 18 August 2026 NCD Issue Closes on 1 September 2026
About Kosamattam Finance Limited
Kosamattam Finance Limited is a non-deposit-taking NBFC classified in the Middle Layer. It is primarily engaged in providing short-tenure loans against household gold jewellery.
The company operates across Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Maharashtra, Uttar Pradesh and Telangana, along with the Union Territories of Puducherry and Delhi.
As of 30 September 2025, the company had approximately 11.61 lakh gold-loan accounts with an aggregate value of Rs. 6,137.11 crore. Gold loans constituted more than 99% of its loan portfolio. The average loan per account remained between approximately Rs. 53,000 and Rs. 58,000.
As of 31 December 2025, Kosamattam Finance operated 981 branches and employed 3,924 people. Apart from gold lending, the company offers microfinance, money-transfer, foreign-exchange and other fee-based services.
Kosamattam Finance NCD Rating
| Rating Agency | NCD Rating | Outlook | Safety Degree | Risk Degree |
|---|---|---|---|---|
| India Ratings & Research Pvt. Ltd. | IND A | Stable | Adequate degree of safety | Low credit risk |
India Ratings affirmed Kosamattam Finance’s NCD and bank-loan ratings at IND A/Stable in July 2026. The rating reflects expectations of continued operating growth, supported by internal accruals and the company’s established gold-loan franchise. India Ratings
An A rating indicates adequate capacity to service debt obligations and comparatively low credit risk. However, it remains below AA and AAA categories and may be more vulnerable to adverse economic or business conditions.
Kosamattam Finance NCD August 2026 Details
| Particulars | Details |
|---|---|
| Issue Open | 18 August 2026 |
| Issue Close | 1 September 2026 |
| Security Type | Secured, Redeemable, Non-Convertible Debentures |
| Base Issue Size | Rs. 100.00 Crore |
| Oversubscription Option | Rs. 100.00 Crore |
| Maximum Issue Size | Rs. 200.00 Crore |
| Issue Price | Rs. 1,000 per NCD |
| Face Value | Rs. 1,000 per NCD |
| Minimum Lot | 10 NCDs |
| Minimum Investment | Rs. 10,000 |
| Market Lot | 1 NCD |
| Listing | BSE |
| Basis of Allotment | First Come, First Served |
| Debenture Trustee | Vistra ITCL India Ltd. |
| Lead Manager | Vivro Financial Services Pvt. Ltd. |
| Registrar | KFin Technologies Ltd. |
The official prospectus dated 14 August 2026 confirms the secured structure, BSE listing and IND A/Stable rating. Kosamattam Finance prospectus
Although allotment is made on a first-come, first-served basis, investors should evaluate credit risk and series suitability before applying.
Kosamattam Finance NCD Allocation
| Investor Category | Allocation |
|---|---|
| Institutional | 10.00% |
| Non-Institutional | 10.00% |
| HNI | 60.00% |
| Retail | 20.00% |
| Total | 100.00% |
The largest allocation of 60% is reserved for HNIs, while retail investors receive 20%. Institutional and non-institutional investors receive 10% each.
Kosamattam Finance NCD Coupon Rates
| Series | Interest Payment | Tenor | Coupon | Effective Yield | Maturity Amount |
|---|---|---|---|---|---|
| 1 | Cumulative | 24 Months | NA | 8.26% | Rs. 1,172 |
| 2 | Monthly | 24 Months | 8.50% | 8.84% | Rs. 1,000 |
| 3 | Monthly | 36 Months | 9.25% | 9.65% | Rs. 1,000 |
| 4 | Cumulative | 36 Months | NA | 9.25% | Rs. 1,304 |
| 5 | Monthly | 42 Months | 10.00% | 10.47% | Rs. 1,000 |
| 6 | Cumulative | 50 Months | NA | 10.22% | Rs. 1,500 |
| 7 | Monthly | 60 Months | 10.00% | 10.47% | Rs. 1,000 |
| 8 | Cumulative | 84 Months | NA | 10.41% | Rs. 2,000 |
Series 5 and Series 7 offer the highest effective yield of 10.47%. Series 8 doubles the investment over seven years, providing a yield of 10.41%.
The 24-month cumulative Series 1 offers only 8.26%, which may not adequately compensate investors for taking A-rated NBFC credit risk compared with alternative fixed-income products.
Which Kosamattam Finance NCD Series Is Best?
| Investor Requirement | Relevant Series | Chanakya View |
|---|---|---|
| Shortest cumulative option | Series 1 – 24 Months | Yield appears comparatively unattractive |
| Short-term monthly income | Series 2 – 24 Months | Suitable for cautious participants |
| Best balance of yield and tenure | Series 3 – 36 Months | Preferred series |
| Three-year cumulative return | Series 4 – 36 Months | Suitable without income requirement |
| Highest monthly yield with moderate tenure | Series 5 – 42 Months | Suitable for higher-risk investors |
| Cumulative growth | Series 6 – 50 Months | Longer exposure |
| Five-year monthly income | Series 7 – 60 Months | Attractive yield but lengthy commitment |
| Maximum maturity amount | Series 8 – 84 Months | Seven-year exposure is not preferred |
Chanakya Preference: Series 3 offers the most balanced combination of monthly income, 9.65% effective yield and a three-year tenure. Investors willing to accept greater credit and duration risk may consider Series 5, which offers a 10.47% effective yield over 42 months.
Series 7 and Series 8 are not preferred because the incremental yield is insufficient for locking into a single A-rated NBFC for five to seven years.
Objects of the NCD Issue
| S.No. | Purpose |
|---|---|
| 1 | Onward lending |
| 2 | Repayment of principal and interest on existing debts |
| 3 | General corporate purposes |
The proceeds will support Kosamattam Finance’s gold-loan disbursements and liability management. Since gold loans generally have shorter tenures than these NCDs, the asset-liability profile benefits from longer borrowing maturity. However, continued access to diversified funding remains important.
Kosamattam Finance Financial Information
| Particulars – Rs. Crore | FY26 | FY25 | FY24 |
|---|---|---|---|
| Assets | 8,284.81 | 6,405.69 | 5,985.78 |
| Total Income | 1,128.82 | 900.43 | 858.94 |
| Profit After Tax | 184.74 | 127.06 | 113.70 |
| Net Worth | 1,285.74 | 1,062.84 | 927.57 |
Chanakya Interpretation: Kosamattam Finance reported strong FY26 growth. Total income increased by 25.36%, while PAT rose by 45.39%. Assets expanded by 29.34%, and net worth increased by 20.97%.
Profitability improved faster than income, strengthening the company’s capacity to service debt. The growing net worth provides an additional cushion. However, the rapid expansion of assets must be supported by adequate capital, liquidity and collection efficiency.
Kosamattam Finance NCD Subscription Status
| Category | Subscription |
|---|---|
| Retail | 1.92x |
| HNI | 2.95x |
| Non-Institutional | 0.03x |
| Institutional | 0.00x |
| Total | 2.15x |
The issue was subscribed 2.15 times as of 27 August 2026. HNI demand was strong at 2.95 times, while the retail category was subscribed 1.92 times.
However, institutional subscription remained nil and non-institutional demand was only 0.03 times. The overall oversubscription was therefore driven almost entirely by HNI and retail applicants.
Subscription demand does not alter the issuer’s credit risk or guarantee secondary-market liquidity.
Key Strengths
✅ IND A/Stable rating, indicating adequate safety and low credit risk.
✅ Secured NCD structure.
✅ Effective yields of up to 10.47%.
✅ Minimum investment of Rs. 10,000.
✅ Strong FY26 income and PAT growth.
✅ Net worth increased to Rs. 1,285.74 crore.
✅ Gold loans are backed by liquid collateral.
✅ Short average gold-loan tenure supports asset-liability management.
✅ Wide branch network of 981 locations.
✅ Large base of approximately 11.61 lakh gold-loan accounts.
✅ Monthly and cumulative interest options.
Key Risks
⚠ An A rating carries greater credit risk than AA or AAA-rated debt.
⚠ More than 99% of the loan portfolio is concentrated in gold loans.
⚠ Operations remain substantially concentrated in South India.
⚠ A sharp fall in gold prices can reduce collateral protection.
⚠ Gold custody creates theft, fraud, storage and operational risks.
⚠ Competition from banks and larger gold-loan NBFCs remains intense.
⚠ Rapid asset expansion may place pressure on capital and funding requirements.
⚠ The company is a frequent issuer in the public NCD market.
⚠ Institutional subscription was nil as of 27 August.
⚠ Secured status does not guarantee immediate or complete recovery.
⚠ Secondary-market liquidity may be limited.
⚠ NCD interest is taxable according to the investor’s slab rate.
⚠ NCDs do not carry bank-deposit insurance.
Address of the Company
Kosamattam Finance Limited
Kosamattam City Centre
Fourth and Fifth Floors, T.B. Road
Kottayam, Kerala – 686001
Phone: +91-481-2586400
Email: cs@kosamattam.com
NCD Registrar
KFin Technologies Limited
Phone: 040-79615565
Email: kosamattam.ncd@kfintech.com
NCD Lead Manager
Vivro Financial Services Pvt. Ltd.
Kosamattam Finance NCD August 2026 Review
Kosamattam Finance’s financial performance is significantly stronger than that of several lower-rated NBFC issuers presently accessing the debt market. FY26 income, PAT, assets and net worth all recorded healthy growth.
The gold-loan model provides tangible collateral and relatively short loan tenures. These characteristics reduce credit risk compared with unsecured lending, but they do not eliminate it. Gold-price movements, auction realisations, regulatory changes and branch-level operational controls remain important.
The IND A/Stable rating provides greater comfort than BBB-rated NCDs. However, conservative investors should recognise that the issue remains below the AA and AAA categories. The 10.47% yield reflects this additional credit risk.
The absence of institutional subscription is a concern, although only 10% of the issue was allocated to institutions. Investors should not take exposure merely because retail and HNI categories are oversubscribed.
Who Should Invest in Kosamattam Finance NCD?
| Investor Type | Suitability |
|---|---|
| Investors seeking monthly income | 🟡 May Consider |
| Investors seeking returns above many bank FDs | 🟡 Limited Allocation |
| Conservative investors wanting AAA-level safety | 🔴 Not Suitable |
| Investors comfortable with A-rated NBFC debt | 🟢 May Consider |
| Investors requiring immediate liquidity | 🔴 Not Suitable |
| Investors with diversified debt portfolios | 🟢 Suitable for limited allocation |
| Investors considering five-to-seven-year series | 🟡 Prefer shorter tenure |
Frequently Asked Questions
What is the Kosamattam Finance NCD August 2026 issue?
It is a public issue of secured, redeemable NCDs with a base size of Rs. 100 crore and an oversubscription option of Rs. 100 crore.
What is the minimum investment in Kosamattam Finance NCD?
The minimum application is 10 NCDs of Rs. 1,000 each, requiring Rs. 10,000.
What is the highest return offered by Kosamattam Finance NCD?
Series 5 and Series 7 offer an effective yield of 10.47%.
What is the rating of Kosamattam Finance NCD?
The issue is rated IND A/Stable by India Ratings, indicating adequate safety and low credit risk.
Which Kosamattam Finance NCD series offers monthly interest?
Series 2, Series 3, Series 5 and Series 7 offer monthly interest.
Which Kosamattam Finance NCD series is preferable?
Series 3 is relatively preferable because it combines monthly income, a 9.65% effective yield and a manageable three-year tenure.
Is Kosamattam Finance NCD secured?
Yes. However, secured status does not eliminate default, recovery or liquidity risk.
Can Kosamattam Finance NCD be sold before maturity?
The NCDs are proposed to be listed on BSE. Exit price and liquidity will depend on market demand, interest rates and the issuer’s credit profile.
Is Kosamattam Finance NCD better than a bank FD?
It offers a higher potential return than many bank deposits but carries greater credit and liquidity risk and is not covered by deposit insurance.
Chanakya Final View
Kosamattam Finance NCD offers a combination of an IND A/Stable rating, secured structure, strong FY26 financial growth and yields of up to 10.47%. The gold-backed lending model and expanding net worth support the investment case.
However, the company has extreme product concentration in gold loans, substantial geographic concentration, frequent dependence on the debt market and no institutional subscription in the present issue.
Series 3 provides the best balance for monthly-income investors. Higher-risk investors may consider Series 5, but five-year and seven-year exposure should be avoided.
Chanakya Recommendation: 🟡 APPLY WITH LIMITED ALLOCATION
Suitable for informed, moderate-risk income investors as a small component of a diversified debt portfolio. It is not suitable as a substitute for emergency funds, bank deposits or AAA-rated investments.