Kosamattam Finance NCD September 2023Kosamattam 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

    Kosamattam Finance NCD September 2023

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