Kosamattam Finance Ltd NCD Review

Kosamattam Finance Ltd NCD review

Kosamattam Finance Limited is a Kerala based NBFC primarily engaged in finance against gold business. Kosamattam Finance Ltd NCD review will look into the detail of the NCD (non-convertible debenture).

About the Issue

Kosamattam Finance Ltd NCD review finds the following details as per the NCD prospectus.

  • The issue opens on – 27 Dec 2018
  • The issue closes on – 25 Jan 2019
  • Issue type – Fixed price issue NCD
  • Lot size – 1 NCD
  • Face value – Rs 1000 per NCD
  • Issue price – Rs 1000 per NCD
  • Issue size – 3,000,000 NCD’s of Rs. 1000
  • Issue size – 300.00 Cr
  • Minimum Order Quantity – 10 NCD
  • Listing at – BSE Exchange

Ratings

The NCDs issued by Kosamattam Finance Ltd has been graded (BBB-) by India rating indicating that NCDs issued by Kosamattam Finance Limited bear a moderate degree of safety in respect of timely servicing of financial obligations. BBB- rating also indicates that the financial instrument issued by Kosamattam Finance Ltd bear moderate credit risks.

Purpose of Issuing NCD

  • Without raising its share capital, the options for increasing its fund is issue NCD (Non-Convertible Debenture)
  • Debenture holders get more liquidity and high-interest rate from the company.
  • NCD issuance enhances a company’s corporate image, brand name.

About the Company

Kosamattam Finance Ltd NCD review finds that the company runs its business of gold loan finance across different states in India. These are Kerala, Tamilnadu, Andhrapradesh, Karnataka, Delhi and Union Territory of Puducherry. Kosamattam Finance Ltd has numerous branches spread across these states including urban, semi-urban and rural localities. People of all classes and section of the societies including entrepreneurs, businessman, traders, farmers, common people, retailers – who cannot manage finance from banks, NBFCs and other financing institutions, come to Kosamattam and similar NBFCs for business and personal loan. Kosamattam Finance Ltd provide finance against gold and ornaments. In addition to the services mentioned above, Kosamattam also provides special and customized fee-based services that include foreign exchange services, money transfer services and services related to air ticketing and the likes.

Management Group

  • Chairman and Managing Director: Mr. Mathew K. Cherian
  • Director: Ms. Laila Mathew
  • Executive Director: Ms. Jilu Saju Varghese
  • Independent Director: Mr. C.Thomas John

Financial Information

Kosamattam Finance Ltd NCD Review

Kosamattam Finance Ltd NCD Review:

The above attachment is the profit-loss statement of the company, taken from DRHP (draft red herring prospectus). The statement contains the last 6 months historical details of the company. It shows the profit-loss level is moderately good. Previously also, the company had issued NCDs. Based on our review Kosamattam Finance Ltd NCD Review carries a NEUTRAL view, Investors can invest in it but at their own risk.

Disclaimer – Views expressed in this non-convertible debentures review is an educated guess made on the basis of available data from open source expressed for the purpose of knowledge sharing. By no means, it should be taken as investment advice or recommendation. Investor/ trader should invest money at their own risk.

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