Kosamattam Finance Limited NCD
(i) Kosamattam Finance Limited, incorporated in 1987, Kosamattam Finance Limited is one of India’s NBFCs engaged in Gold loan business. They lend money against the pledge of household gold jewellery. They have a diversified presence in the states of Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Delhi, Maharashtra, Gujarat, and Telangana, along with the Union Territory of Puducherry.
(ii) The Gold Loan portfolio for the financial years ending on March 31, 2018, March 31, 2017 and March 2016 comprised of 6,47,779, 5,57,478 and 4,79,540 gold loan accounts, aggregating to 2,05,050.99 lakhs, 1,73,040.27 lakhs and 1,31,224.42 lakhs, respectively, which is 91.56 %, 90.03 % and 89.12% of the total loans portfolio as on those dates. As on June 30, 2018, they had a network of 923 branches spread in the states of Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Delhi, Maharashtra, Gujarat and Telangana along with the Union Territory of Puducherry and they employ 3,214 persons in the business operations.
(iii) They belong to the Kosamattam Group led by Mr. Mathew K. Cherian. They are headquartered in Kottayam in the state of Kerala. The Kosamattam group was originally founded by Mr. Chacko Varkey (also known as Mr. Nasrani Varkey). His great-grandson, Mr. Mathew K. Cherian, the present Chairman and Managing Director of Kosamattam Group is a fourth -generation entrepreneur in the family. Under his able leadership, our Company is emerging as a prominent Gold Loan business company with 923 branches, as of June 30, 2018, largely spread across southern India.
(iv) This NCD is a combination of Secured NCDs for a value up to 25,000 lakhs and Unsecured NCDs for a value up to 3,000 lakhs within the overall limit of `25,000 lakhs.
Objective of NCD Kosamattam Finance Limited NCD:
Objective of Kosamattam Finance Limited NCD are:
1. Raise Funds for the purpose of onward lending and for repayment of interest and principal of existing loans.
2. General Corporate Purposes.
Kosamattam Finance Limited NCD Details:
| Open Date: | Aug 23 2018 |
| Close Date: | Sep 21 2018 |
| Issue Type: | Fixed Type Issue |
| Issue Size: | ₹ 250 Cr. |
| Face Value: | ₹ 1000 Per NCD |
| Market Lot: | 1 NCD |
| Listing At: | BSE |
Promoters:
Promoters of Kosamattam Finance Limited NCD Company are:
1. Mr. Mathew K. Cherian
2. Ms. Laila Mathew
3. Ms. Jilu Saju Varghese
The Promoters have 73.35% shareholding in our Company
Financials:
| Year | Revenue(lacs) | Profit After Tax(lacs) | Gross NPA | Net NPA |
| FY16 | 34,569.00 | 1,122.00 | 0.5% | 0.20% |
| FY17 | 35,225.00 | 1,568.00 | 0.6% | 0.27% |
| FY18 | 43,060.00 | 3,081.00 | 0.98% | 0.59% |
Credit Rating:
India Ratings and Research Private Limited assign the following debt rating to KFL.- " IDB BBB"- Outlook Stable
Conclusion: The rating of NCDs by India Ratings indicates that instruments with this rating are considered to have a moderate degree of safety regarding timely servicing of financial obligations. Such instruments carry moderate credit risk.
Interest Rates:
| Tenure (Months) | 24 | 36 | 48 | 60 | 84 | |||
| Nature | Secured | Non-Secured | ||||||
| Series | I | II | III | IV | V | VI | VII | VIII |
| Interest | Monthly | Cumulative | Monthly | Cumulative | Cumulative | Annual | Monthly | Cumulative |
| Minimum App | Rs 10,000/- (10 NCDs) across all Series | |||||||
| FV | Rs1,000/- | |||||||
| Multiples | 1,000/- (1 NCD) | |||||||
| Coupon Rate | 9.75% | NA | 10.00% | NA | NA | 10.25% | 10.25% | NA |
| Yield | 10.20% | 10.00% | 10.47% | 10.52% | 10.67% | 10.25% | 10.75% | 10.41% |
Post Tax returns:
(i) Sold after Maturity
The interest earned through NCDs will be added to the total income and will be taxed at 5%, 20%, and 30% respectively depending upon the income slab of an Individuals.
(ii) Sold Before Maturity
If you decide to sell the NCDs on the stock exchange, capital gains can also arise. If NCDs are sold with in a period of 12 months from the date of allotment, short term capital gains / loss (STCG) will arise and if you decide to sell NCDs after a period of 12 months, the resulting gain or loss is called long term capital gains / loss (LTCG).
Recommendation:
Review and Recommendation of Kosamattam Finance Limited NCD by InvestorZone team 3/10
[ Though Interest rates are looking lucrative, however, as RBI has issued a lot of observations in the past. So the issue looks risky.
1-5: Fair
5-7: Good
7-10: Excellent
Coming Soon => IRCON IPO
Lead Manager of Kosamattam Finance Limited NCD:
- Vivro Financial Services Private Limited
Registrar of Kosamattam Finance Limited NCD:
- Karvy Computershare Private Limited
Discussion on Kosamattam Finance Limited NCD:
10 Comments
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No QIBs yet in Kosamattam Finance Limited NCD. Looks like no interest from Financial Institutions.
Subscription figure as on 28.08.2018
(i) Category-1= 0.00
(ii) Category-1= 0.93
(iii) Category-1= 1.22
Overall= 0.98
Subscription figure as on 28.08.2018
(i) Category-1= 0.00
(ii) Category-1= 0.59
(iii) Category-1= 0.64
Overall= 0.55
Subscription figure as on 27.08.2018
(i) Category-1= 0.00
(ii) Category-1= 0.40
(iii) Category-1= 0.44
Overall= 0.38
Category-3[ 50% reserve]
3(a) Resident Indian individuals
3(b) Hindu Undivided Families through the Karta
Category-2[ 40% reserve ]
2(a) Companies Bodies Corporate Registered Societies
2(b)Public/Private Charitable Religious trusts
2(c)Scientific and/or Industrial Research Organizations
2(d)Partnership firms in the name of the partners
2(e)Limited Liability Partnerships
2(f)Educational Institutions and Association of Persons
2(g)Resident Indian individuals making an application for value exceeding Rs 5 lacs
2(h)Hindu Undivided Family through the Karta making an application for value exceeding Rs 5 lacs
Category-1[ 10% reserve]
1(a) Resident Public Financial Institutions Statutory Corporations
1(b) Commercial Banks Co-operative Banks Regional Rural Banks
1(c) Provident Funds Pension Funds Superannuation Funds Gratuity Fund
1(d) Venture Capital funds Alternative Investment Funds registered with SEBI
1(e) Insurance Companies registered with the IRDA
1(f) National Investment Fund
1(g) Mutual Funds registered with SEBI
1(h) Insurance fund set up and managed by the Indian army navy or the air force of the Union of India or by the Department of Posts India
Lead Managers have filed Draft Prospectus of NCD Public issue of *INDIABULLS COMMERCIAL CREDIT LIMITED*
Shelf Limit: *₹ 3,000 Crores*
Instrument: *Secured*/ *Redeemable*
Credit Rating: *CARE AAA; Stable’ by CARE Ratings Ltd*’ and *CRISIL AAA / Stable by CRISIL*
Listing: Proposed to be listed on *BSE* & *NSE*
Issuance Mode: *Demat*
Face Value: *₹ 1000*
Retail Investors can apply up to 5 lacs.
The Prospectus of Kosamattam can be accessed via https://www.sebi.gov.in/web/?file=https://www.sebi.gov.in/sebi_data/attachdocs/jul-2018/1531732950618.pdf#page=1&zoom=auto,-24,842