Kosamattam Finance Ltd. NCD – Coupon Rates, Credit Rating

Kosamattam Finance Ltd. NCD - Coupon Rates, Credit Rating

Kosamattam Finance Ltd. NCD

Kosamattam Finance Limited is a non-deposit taking NBFC and works as a gold loan provider against the household gold jewelry 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. Recently, the firm has launched a new non-convertible debentures scheme. The name of the NCDs is Kosamattam Finance Ltd. NCD. It has opened the NCDs on 23rd December 2020 and closed on 19th January 2021.

Features of New NCD:

Issue Open Dec 23rd, 2020 – Jan 19th, 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, 30, 39, 48, 66, and 84 months
Series I to VII
Payment Monthly, Cumulative,
Basis of Allotment First Come First Serve Basis

The size of the base issue is 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 8.50%  1,093.50
  II  30 M  Monthly  9.25% 9.65% 1,000
  III  30 M  Cumulative  NA 9.34% 1,250
  IV  39 Months  Monthly 10% 10.47% 1,000
  V  48 M  Cumulative  NA 10.67% 1,500
  VI 66 Months  Cumulative  NA 10.71% 1,750
  VII  84 M  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.

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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