Kosamattam Issue 2019, Features, Credit Rating, Reasons to Invest, Price, Date, Allotment, Listing, Reviews, Status & How to Apply?

Greetings Investors

Our today’s guide is prepared on “Kosamattam NCD Issue Details 2019″

Kosamattam to consider raising Rs  350.00 Crorescrore via the issuance of NCDs

Incorporated in the year 1987, the company is Kerala based significant non-deposit taking NBFC and is a gold loan provider across some of the states in India.

The company has a range in the union territory of Puducherry, Maharashtra, Delhi, Andhra Pradesh, Karnataka, Telangana, Gujarat, Tamil Nadu, and Kerala

The company is registered with the reserve bank of India as an NBFC and has a  Full-Fledged Money Changers (FFMC) license valid till 29th Feb 2020.

The company is all set to propose NCD on Monday, Nov 11, 2019. The company is issuing secured and unsecured non-convertible debentures.

The issue will be closed on Tuesday, Dec 10, 2019

Stay tuned till the end to earn the latest update on “Kosamattam Finance Ltd NCD 2019”.

So, without any further ado let’s get started 🙂

About Kosamattam

The gold loan is the chief business of the company. The company also proffer other miscellaneous services such as air ticketing, agriculture, power generation, foreign currency exchange, money transfer, and microfinance services.

The company is unfolding as an acclaimed gold loan business with 928 branches as on May 31, 2019, largely expanded across southern India.

The Gold Loan portfolio of the company for the financial years ending on March 31, 2019, March 31, 2018, and March 31, 2017, consisting of 6,63,694, 6,47,779, and 5,57,478 gold loan accounts, aggregating to Rs. 2,21,230.86 lakhs, Rs. 2,05,050.99 lakhs, and Rs. 1,73,040.27 lakhs, respectively, which is 94.94%, 91.56%, and 90.03% of our total loans portfolio as on those dates.

Talking about the total income

The company has procured total income Rs 43,060.86 lakhs, Rs 35,225.23 lakhs, Rs 34,569.97 lakhs, Rs 25,754.43 lakhs and Rs 26,186.8 lakhs for the FY 2018, 2017, 2016, 2015 and 2014, respectively.

Kosamattam Finance NCD Issue Details

Kosamattam Finance Limited NCD – Issue Details:

Issuer Kosamattam Finance Limited (View Report)
Issue Type Secured and Unsecured Redeemable Non-Convertible Debentures
Issue Period Issue Opens: Monday, Nov 11, 2019
Issue Closes: Tuesday, Dec 10, 2019
Coupon Rate 10.71% p.a *
Issue Size Base Issue of Rs. 175 Crores with an option to retain oversubscription up to Rs. 175 Crores aggregating upto Rs.350 Crores.
Face Value Rs. 1,000 per NCD
Minimum Application Size 10 NCDs (Rs. 10,000) and in the multiple of One NCD thereafter
Credit Rating ‘IND BBB’ Outlook Stable, by India Rating & Research Private Limited (“India Rating”)
Mode of Allotment & Trading In Dematerialised Form
QIB 10% of issue size
Non Institutional 40% of issue size
Retail Individual 50% of issue size
Listing BSE
Depositories NSDL & CDSL
Registrar Karvy Fintech Private Limited
Book Running Lead Managers Karvy Investor Services Limited and SMC Capitals Limited
* Highest yield

Interest rates of Kosamattam NCD Issue 2019

Interest Rates for Eash Series is stated below

Series 1 Series 2 Series 3 Series 4 Series 5 Series 6 Series 7 Series 8
Frequency of Interest Payment Cumulative Monthly Monthly Cumulative Cumulative Monthly Monthly Cumulative
Tenor 18 Months 24 Months 36 Months 36 Months 48 Months 60 Months 84 Months 84 Months
Coupon Rate (Retail) For Category I & II/ for III & IV 9.26 9.75 10% 10.52 10.67 10.71 10.25 10.41
Amount on Maturity For Category I & II/ for III & IV ₹1,142 ₹1,000 ₹1,000 ₹1,350 ₹1,500 ₹1,750 ₹1,000 ₹2,000

What is the issue break-up?

Below stated is the issue break up

NCD’s Offered

NCD’s offered in each investor category:

Category NCD’s Reserved
Category 1 (QIB) 150,000
Category 2 (NII) 600,000
Category 3 (HNI) 750,000
Category 4 (RII) 0
Total NCD’s 1,500,000

What is the Credit Rating of these NCDs?

The kosamattam NCD proposed issue has been rated ‘IND BBB’ Outlook Stable, by India Rating and Research Private Limited (“India Rating”) for an amount up to ₹ 30,000 lakhs vide its letter dated June 26, 2019.

The rating by India Ratings says that instruments with this rating are reviewed to have a medium degree of
safety regarding timely servicing of financial obligations. Such instruments carry moderate credit risk.

How is kosamattam is doing in terms of profits?

Total Income
It has generated total income of Rs 43,060.86 lakhs, Rs 35,225.23 lakhs, Rs 34,569.97 lakhs, Rs 25,754.43 lakhs and Rs 26,186.8 lakhs for the FY 2018, 2017, 2016, 2015 and 2014, respectively.

Reasons Why to invest in Kosamatam NCD?

I have mentioned below the cherry-picked reasons why investors should consider investing in Kosamatam NCD 2019

The Kosamattam Finance has proposed NCD OF Rs 150.00 Crores

  • Commenting on the prospects of the issue, the Kosamatam NCD would provide a better return than that of the fixed deposit.
  • A lucrative Interest rate of 10.71%
  • The company is registering great profits in the past years

Why not to invest?

When it comes to investing, nothing will pay off to the investor than educating themselves

It is appropriately stated that

“An Investment in knowledge pays the best Interest”

Below I have listed  a few reasons why you should not consider investing in Kosamatam private Ltd

  • The company proffers security and unsecured NCDs.
  • The company is subject to inspections by the CDSL in its capacity as a depository
  • For complete risk factors, one can read the risk factors indicated in the prospectus.

How to Apply for Kosamattam NCD?

If you have a  Demat account and want to apply under the IPO/NCD section. In case you have applied in the physical form, the procedure is specified in the prospectus.

These NCD would get listed within 12 days from the closure of the NCD subscription

Objects of the Company

  • For the purpose of the lending loan to the company
  • general corporate Purpose
  • Repayment of interest and principal of existing.

kosamattam Contact Details

Kosamattam Finance Ltd
Kosamattam Mathew K
Cherian Building, M. L. Road,
Market Junction, Kottayam – 686 001, Kerala, India

Phone: +91 481 258 6400

Kosamattam Finance NCD 2019 Lead Manager(s)

  1. Karvy Investor Services Limited
  2. SMC Capitals Limited

What are the Key strengths of the company?

  • Structured and efficient IT structure
  • Qualified Management and experienced Professional
  • it has a long operating history
  • Branch network across rural and semi-urban areas

Final Words

Dear Readers

Kosammatam Finance proffers a great interest rate. While its  financials are performing outstandingly, but its low credit

The company is unfolding as a prominent gold loan business with 928 branches.

The investor’s who has a high intake of risk or have a high-risk appetite can invest in these NCD

I would advise moderate risk and the investors with a low-risk appetite stay away from these NCD.

It is aptly stated that

“Never depend on the single income make the investment to create a second source.”

I hope the above guide on “Kosamattam NCD Issue 2019″ has been of great use.

Also, if you have any queries or suggestion regarding the same then you can state them below in the reference box.

Thanks for reading and have a great day.