Kosamattam Finance Limited NCD Details

Kosamattam Finance Limited NCD

Kosamattam Finance Limited NCD Details

Kosamattam Finance Limited has launched a new non-convertible debentures scheme. The name of the NCDs is Kosamattam Finance Limited NCD. It has opened the NCDs on 30th March 2021 and closed on 23rd April 2021. The firm is a non-deposit-taking NBFC and works as a gold loan provider against household gold jewellery across some states in India.

The firm offers air ticketing, agriculture, power generation, foreign currency exchange, and microfinance services. But, the primary business of this company is the gold loan business. 

Features of New NCD:

Issue Open March 30th, 2021 – April 23rd, 2021
Security Name Kosamattam Finance Limited
Security Type Secured, Redeemable, Non-Convertible Debentures and/or Unsecured Subordinated Non-Convertible Debentures
Issue Size (Base) Rs. 175.00 crores
Shelf (issue size) Rs. 175.00 crores
Issue Price Rs. 1,000 per NCD
Face Value Rs. 1,000 each NCD
Minimum Lot Size 10 NCD
Market Lot 1 NCD
Listing At BSE
Credit Rating BWR BBB +/Stable
Tenor 400 days, 24, 36, 42, 48, 66, and 84 months
Series I to VIII
Payment Monthly, Cumulative,
Basis of Allotment First Come First Serve Basis

The size of the base issue remains aggregating up to Rs. 17,500 lakhs by a face value of Rs. 1,000 each and Shelf issue aggregating up to Rs. 17,500 lakhs. As per the reports, the price band of the issue is fixed at Rs. 1,000 per NCD with a face value of Rs. 1,000 each bond.

Further, the minimum lot size of the issue is 10 NCD bonds and the market lot of the issue is 1 NCD. Besides, the issued bonds to be listed on BSE Limited.

The Objective of the NCDs:

According to the source, the main object of the issue is for the purpose of onward lending and repayment of interest and principal of existing debts of the company. The last one is for general corporate purposes.

Coupon Rates:

 Series Tenor  Frequency of Interest Payment  Coupon Rate  Effective Yield (%) per Annum Redemption Amount
I  400 days  Cumulative  NA 8.00%  1,088
II  24 Months  Monthly  8.50% 8.84% 1,000
III 36 Months  9.25% 9.65%
IV  Cumulative  NA 9.31% 1,306
V  42 Months Monthly 10% 10.47% 1,000
VI 48 Months  Cumulative  NA 10.67% 1,500
VII  66 Months  Monthly 10.25% 10.75% 1,000
VIII  84 Months  Cumulative  NA 10.41% 2,000

The NCDs proposed to be issued under this issue have been rated as ‘BWR BBB +/Stable‘ by Brickwork Ratings India Private Limited.

As of the source, the NCD has reserved for QIB, NII, HNI, and RIIs. It reserved for QIBs and NIIs up to 1,75,000 NCDs each. Further, 5,25,000 bonds reserved for HNIs and 8,75,000 bonds for Retail Individual Investors (RII).

Disclaimer: This post is just information about the scheme. It does not give any advice or recommendation. Please read the offer document carefully and consult your investment adviser before investing.

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