Kosamattam Finance is currently devising a secured NCD bond. These notes will be offered for sale on January 1, 2024. Kosamattam Finance is a leading NBFC company in India. Kosamattam Finance NCD offers NCD interest rates up to 10% and yields up to 10.47%. The tenure of these NCDs ranges from 20 months to 88 months. These interests are paid monthly or at maturity. Should you invest in Kosamattam Finance NCD to be issued in January 2024?
About Kosamattam Finance Limited
The Company is a systemically important non-deposit-taking NBFC principally engaged in gold loan business and operates in the states of Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Delhi, Maharashtra, Gujarat and Telangana. The state lends money based on household budget and jewelry pledges. Union Territory of Pondicherry.
Kosamattam Finance NCD – January 2024 issue details
| Subscription start date | January 1, 24 |
| Subscription end date | January 12, 24 |
| Issued securities name | Kosamattam Finance Limited |
| Type of security | Secured, redeemable, non-convertible debentures (Secured NCDs) |
| Publication size (base) | 100 million rupees |
| Publish size (option to keep beyond subscription) | 100 million rupees |
| Total issue size | 200 million rupees |
| Issue price | 1,000 rupees per deposit |
| face value | 1,000 rupees per deposit |
| series | Series I-VIII |
| minimum lot size | 10 bonds and then 1 bond |
| tenure | 18, 24, 30, 36, 39, 48, 54, 88 months |
| Interest payment frequency | Monthly and cumulative |
| Listed | Within 6 business days for BSE |
| lead manager | SMC Capitals Co., Ltd. |
| bond trustee | Vistra ITCL India Limited |
| Registrar in question | KFIN Technologies Co., Ltd. |
Kosamattam Finance NCD – Interest rates for January 2024
| option | I | II | Ⅲ | Ⅳ | V | VI | VII | VIII |
|---|---|---|---|---|---|---|---|---|
| Interest payment frequency | cumulative | monthly | cumulative | monthly | cumulative | monthly | cumulative | cumulative |
| Tenure (months) | 18 | twenty four | 30 | 36 | 39 | 48 | 54 | 88 |
| Coupon (% per year) | N.A. | 8.75% | N.A. | 9.25% | N.A. | 10.00% | N.A. | N.A. |
| Effective yield (%/year) | 8.52% | 9.11% | 9.00% | 9.65% | 9.25% | 10.47% | 9.43% | 9.91% |
| Amount at maturity (Rs.) | 1,130.50 | 1,000.00 | 1,240.00 | 1,000.00 | 1,333.00 | 1,000.00 | 1,500.00 | 2,000.00 |
What is Kosamattam Finance NCD Credit Rating – January 2024?
These NCDs are rated IND A-/Stable by India Ratings, indicating that instruments with this rating are considered to have an appropriate degree of security with respect to timely repayment of financial obligations. The credit risk of such products is low.
What about the company’s profits?
Details of the company’s profits are as follows:
- Year ended March 2019 – Rs 4,314 billion
- Year ended March 2020 – Rs 4,763 billion
- Year ended March 2021 – Rs 6,531 crore
- Year ended March 2023 – Rs 7,999 crore
Kosamattam Finance NCD – Why invest in January 2024?
These Kosamattam NCDs offer attractive interest rates where investors can earn up to 10% interest and yield up to 10.47% per annum.
- Kosamattam Finance generates stable profits. This means that the company has the ability to pay interest on time to his NCD holders without any delay.
- Issue a secure NCD. These NCDs are safe compared to other unsafe NCDs. If a company liquidates or goes out of business for any reason, NCD investors who have secured security can preferentially repay the capital backed by the company’s assets with interest. Therefore, it is safe to invest in such safe NCD options.
- The company has a credit rating of A-/Stable from India Ratings. Such ratings are considered to have low credit risk.
Kosamattam Finance NCD – Want to invest in January 2024?
The company has a credit rating of A-/Stable from India Ratings. However, its credit rating until last year was BBB. Bonds with credit ratings below A grade are considered very risky.
- The coronavirus pandemic has had a significant impact on business operations, and may continue to do so in the future.
- Such NBFC companies are subject to RBI inspection and any adverse action could affect their business.
- Please refer to the prospectus for complete risk factors set forth. Kosamattam NCD January 24th Prospectus.
How can I invest in these NCDs?
This issue is available only in demat format. You can apply online or through the website of the broker where you maintain your demat account. Application forms can be downloaded from the Lead Manager’s website. Please refer to the prospectus for further details.
Should you invest in Kosamattam Finance NCD January 2024 issue?
These NCDs offer high interest rates of up to 10%, giving a yield of 10.47%. The company has a good credit rating of A-/Stable from India Ratings.
On the other hand, some small finance banks are offering interest rates of up to 8.5% subject to DICGC up to Rs.5 lacs.Until last year (2022), the credit rating was BBB by BWR rating These have been upgraded to A-/Stable through Indian Ratings.
Investors who understand both the above pros and cons and are willing to take risks can invest in such NCDs.
Suresh KP is the founder of Myinvestmentideas. He is a NISM Certified Investment Advisor and he is a NISM Certified Research Analyst. He has been analyzing financial markets for the past 20 years. He can be reached at suresh@myinvestmentideas.com.
