July 18, 2024
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Kosamattam Finance NCD July 2024 Details & Guidance
NCD Issue Opens on 19 July 2024
NCD Issue Closes on 1 August 2024
# NCD Guidance is given at the bottom of the post
About the Company:
Kosamattam Finance is a prominent non-deposit taking NBFC operating primarily in the Gold Loan sector. Headquartered in Kottayam, Kerala, and led by Mathew K. Cherian, it is registered with the RBI as a systemically important institution under Section 45 IA of the RBI Act. Its operations extend across Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Delhi, Maharashtra, Uttar Pradesh, Telangana, and the Union Territory of Puducherry, with a robust network of 986 branches as of March 31, 2024.
Its core business involves lending money against household jewellery, commonly known as Gold Loans. As of March 31, 2024, its Gold Loan portfolio comprised 9,16,040 accounts amounting to Rs.4,88,665.31 lakhs, which constitutes 98.92% of our total loans portfolio. Over the years, its consistently grown its portfolio, supporting financial inclusion and meeting diverse customer needs.
In addition to its NBFC operations, it holds a Full-Fledged Money Changers (“FFMC”) license (FE.KOC.FFMC.40/2006, valid until February 28, 2025), further strengthening its position in the financial services sector.
At Kosamattam Finance, it prides itself on its extensive reach, strong regulatory compliance, and commitment to customer service, ensuring it remains a trusted partner in financial solutions across the regions it serves.
Get more details about the company @ http://www.kosamattam.com/
NCD Promoter:
Mathew K. Cherian, Laila Mathew, and Jilu Saju Varghese are the company’s promoters.
NCD Rating
The NCDs proposed to be issued under this Issue have been rated “IND A-/Stable”, by India Ratings & Research Private Limited (“IRRPL”) for an amount up to Rs. 20,000 lakhs.
| Kosamattam Finance NCD July 2024 Detail | |
| Issue Open | July 19, 2024 – August 1, 2024 |
| Security Name | Kosamattam Finance Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | Rs 100.00 Crores |
| Issue Size (Oversubscription) | Rs 100.00 Crores |
| Overall Issue Size | 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 & Research Private Limited (IRRPL). |
| Tenor | 18, 24, 30, 36, 39, 48, 60 and 84 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 |
| 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 | 60 Months | 48 Months | 84 Months |
| Coupon (% per Annum) | NA | 9.25% | NA | 10.00% | NA | 10.25% | NA | NA |
| Effective Yield (% per Annum) | 9.00% | 9.65% | 9.41% | 10.47% | 9.75% | 10.75% | 10.67% | 10.41% |
| Amount on Maturity (In Rs.) | Rs 1,138.00 | Rs 1,000.00 | Rs 1,252.00 | Rs 1,000.00 | Rs 1,353.00 | Rs 1,000.00 | Rs 1,500.00 | Rs 2,000.00 |
Kosamattam Finance NCD July 2024 Details & Guidance
Objects of the Issue
The company intends to utilize the net proceeds from the issue towards the funding of the following objects:
For the purpose of onward lending.
For repayment of interest and principal of existing debts of the company.
For general corporate purposes.
.
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Kosamattam Finance NCD July 2024 Financial Information (Restated)
| Company Financials | |||
| Kosamattam Finance Limited Financial Information (Restated) | |||
| Period Ended | 31.03.23 | 31.03.22 | 31.03.21 |
| Assets | 5,444.34 | 4,568.89 | 4,025.55 |
| Revenue | 782.54 | 624.79 | 541.84 |
| Profit After Tax | 107.05 | 80 | 65.32 |
| Amount in Rs Crore | |||
Address of the Company
Kosamattam Finance Limited
Kosamattam City Centre,
Floor Number 4th & 5th, T.B Road,
Kottayam – 686001
NCD Lead Managers
Smc Capitals Limited
NCD Registrar
Kfin Technologies Limited
Sakthi Finance NCD June 2024
Subscription Status on June 20, 2024, 5.00 pm
| Category | Subscription |
| Retail | 0.00 X |
| HNI | 0.00 X |
| Non-Institutional | 0.00 X |
| Institutional | 0.00 X |
| Total | 0.00 X |
Kosamattam Finance NCD July 2024
Kosamattam Finance NCD July 2024 Review:
1. The company has strong parentage and but small profits. It launched its credit business around 69 years ago with retail credit products and can be termed as the veteran/highly experienced entity of this business.
2. The NCDs have been rated “IND A-/Stable”, by India Ratings & Research Private Limited (“IRRPL”) for an amount up to Rs. 20,000 lakhs.
4. The capital adequacy ratio, computed on the basis of applicable RBI requirements, as on December 31,2023 is18.01%. Small investment may be made
