September 12, 2023
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Kosamattam Finance NCD September 2023 Details
NCD Issue Opens on 8 September 2023
NCD Issue Closes on 22 September 2023
# NCD Guidance is given at the bottom of the post
About the Company:
Kosamattam Finance is a systemically important non-deposit taking NBFC primarily engaged in the Gold Loan business, lending money against the pledge of household jewellery (“Gold Loans”) in the state of Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Delhi, Maharashtra, Gujarat, Uttar Pradesh and Telangana along with the Union Territory of Puducherry. Its Gold Loan portfolio for the financial years ending on March 31, 2023, March 31, 2022 and March 31, 2021 comprised of 8,82,414, 8,10,711 and 7,18,836, gold loan accounts, respectively, aggregating to Rs 4,45,407.85 lakhs, Rs 3,65,802.24 lakhs and Rs. 3,14,609.59 lakhs, respectively, which is 98.68%, 98.52% and 98.34% of its total loans portfolio as on those dates.
As on June 30, 2023, it had a network of 989 branches spread in the states of Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Delhi, Maharashtra, Gujarat, Uttar Pradesh and Telangana along with the Union Territory of Puducherry and it employed 4,092 persons in its business operations.
It belongs to the Kosamattam Group led by Mathew K. Cherian. It is headquartered in Kottayam
in the state of Kerala.
It is registered with RBI as a systemically important, non-deposit taking NBFC (Registration No. B-16.00117 dated December 19, 2013) under Section 45 IA of the RBI Act. Further, it also has a Full Fledged Money Changers (“FFMC”) license bearing number FE.KOC.FFMC.40/2006 dated February 07, 2006 which is valid up to February 28, 2025.
The Kosamattam group was originally founded by Nasrani Varkey. His great grandson, Mathew K. Cherian, the present Chairman and Managing Director of Kosamattam Group is a fourth-generation entrepreneur in the family. Under his able leadership, the Company is emerging as a prominent Gold Loan business company with 989 branches, as on June 30, 2023, largely spread across southern India.
Gold Loan is the most significant product in the product portfolio of the Company.
Get more details about the company @ https://www.kosamattam.com/
NCD Promoter: Mr. Mathew K. Cherian, Ms. Laila Matthew, and Jilu Saju Varghese
NCD Rating
The NCDs proposed to be issued under this Issue have been rated ‘IND A-/Stable’, by India Ratings & Research Private Limited.
| Kosamattam Finance NCD September 2023 Detail | |
| 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) | 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 | 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 |
| NCD Allocation Ratio | |
| Category | NCD’s Allocated |
| Institutional | 10% |
| Non-Institutional | 10% |
| HNI | 30% |
| Retail | 50% |
| Total | 100% |
| NCD’s Offered by Category | |
| Category | NCD’s Reserved |
| Institutional | 1,00,000 |
| Non-Institutional | 1,00,000 |
| Retail | 3,00,000 |
| Category 4 | 5,00,000 |
| Total NCD’s | 10,00,000 |
| 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 | 20 Months | 24 Months | 30 Months | 36 Months | 39 Months | 48 Months | 54 Months | 88 Months |
| Coupon (% per Annum) | NA | 9.75% | NA | 9.25% | NA | 10.00% | NA | NA |
| Effective Yield (% per Annum) | 8.52% | 9.11% | 8.85% | 9.65% | 9.25% | 10.47% | 9.43% | 9.91% |
| Amount on Maturity (In Rs.) | Rs 1,146 | Rs 1,000 | Rs 1,236 | Rs 1,000 | Rs 1,333 | Rs 1,000 | Rs 1,500 | Rs 2,000 |
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.
| Company Financials | ||
| Kosamattam Finance NCD September 2023 Financial Information (Restated) | ||
| Period Ended | 31-Mar-22 | 31-Mar-23 |
| Assets | 4,568.89 | 5,444.34 |
| Revenue | 624.79 | 782.54 |
| Profit After Tax | 80 | 107.05 |
| Net Worth | ||
| Reserves and Surplus | ||
| Total Borrowing | ||
| 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
Kosamattam Finance NCD September 2023
Red Herring Prospectus
Analysis & Guidance:
As on 31.03.2023
Gross NPA (%) 1.58%
Net NPA (%) 0.68%
Tier I Capital Adequacy Ratio (%) 14.56%
Tier II Capital Adequacy Ratio (%) 3.15%
Gross Debt Equity Ratio of the Company:
As on March 31, 2023
Before Issue of the Debt Securities 6.04
After Issue of the Debt Securities 6.31
Rating: ‘IND A-/Stable‘
Interest rates are okay. Risk Return ratio is okay.
Small investment may be made
| Kosamattam Finance NCD September 2023 | |
| Subscription Status | |
| On 12.09.2023 | @ 5.00 pm |
| Category | Subscription |
| Institutional | 0.00 T |
| Non-Institutional | 0.01 T |
| HNI | 3.55 T |
| Retail | 0.00 T |
| Total | 1.07 T |
