Kosamattam Finance Limited, an established gold loan NBFC, suffered from the latest Convertible Corporate Debt (NCD) issues in March 2025. With competitive interest rates and safety, this NCD offers attractive investment opportunities for those seeking fixed income options. In this article, I will review it Kosamattam Finance NCD March 2025 Details of this NCD issue (interest rates, credit ratings, risks, benefits, etc.) can help investors decide whether to invest or avoid this service.
About Kosamattam Finance Limited
Kosamattam Finance is a non-depositor NBFC primarily engaged in gold loan financing. Headquartered in Kottayam, Kerala, it operates in several states including Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Maharashtra, Delhi, Gujarat and Telangana. Apart from gold loans, the company offers microfinance, money transfer services, foreign exchange and agricultural finance. As of December 31, 2024, there is a vast branch network of 975 branches, employing 3,697 people.
Kosamattam Finance NCD – Details of March 2025 Question
- Issue Date: March 26, 2025
- An end date is issued: April 11, 2025
- Issuance type: Protected, redemptive, non-convertible corporate bonds (NCDs)
- Basic Question Size: £100 crore
- Overall problem size (with oversubscription): £200 crore
- Issued price: 1,000 pounds per NCD
- Minimum investment: 10 NCDs (£10,000)
- list: BSE (Bombay Stock Exchange)
- Credit Rating: Ind a-/stable from India’s assessment and research
- Tenure options: 18, 24, 30, 36, 39, 48, 60, 84 months
- Interest payment mode: Monthly and cumulative
- Assignment Base: First come and first serve
Kosamattam Finance NCD Interest Rates – March 2025
NCD comes with a variety of series offering monthly and cumulative interest options. Below is the interest rate structure.
| series | Interest payment | Tenure period | Coupon rate (PA) | Effective Yield (PA) | Maturity (per £1,000) |
|---|---|---|---|---|---|
| I | Cumulative | 18 m | Na | 9.25% | £1,142 |
| ii | monthly | 24 m | 9.25% | 9.92% | £1,000 |
| iii | Cumulative | 36 m | Na | 9.75% | £1,322 |
| IV | monthly | 36 m | 10% | 10.47% | £1,000 |
| v | Cumulative | 39 m | Na | 10.17% | £1,370 |
| vi | monthly | 60 m | 10.25% | 10.75% | £1,000 |
| vii | Cumulative | 48 m | Na | 10.67% | £1,500 |
| viii | Cumulative | 84 m | Na | 10.41% | £2,000 |
Credit rating
NCD has been rated Ind A-/Stable by the India Rating & Research Private Limited. This rating shows sufficient security regarding financial obligations, but indicates low credit risk.
Why invest in Kosamattam Finance NCD – March 2025?
- Attractive interest rates – Provides an effective yield of up to 10.75%.
- Protected NCD – Backed by company assets, reducing the risk of default.
- Normal monthly income – Suitable for investors looking for bonds.
- A- (Stable) Credit Rating – Shows a fair level of safety.
- A diversified loan portfolio – The company has a strong presence in multiple financial services besides gold loans.
Kosamattam Finance NCD – Would you like to invest in March 2025?
- Default risk – Despite the assessment, there is a risk as NBFCs may face liquidity issues.
- Not rated as AAA or AA – Lower rating than the highest rated NCD on the market.
- Volatility in the Gold Loan Business – Gold prices fluctuate and affect the performance of the company.
- Fluidity issues – Unlike FDS, early exits are difficult due to low trading on BSE.
How do I apply to Kosamattam Finance NCD?
You can apply through this NCD.
- Online via your Demat account: Apply through brokers such as Zerodha, ICICI Direct, HDFC Securities, etc.
- Offline via physical form: Submit the form to the designated bank and broker.
- Allocation is based on a first come first served basistherefore, early application is recommended.
Kosamattam Finance NCD – Should I invest in March 2025?
Kosamattam Finance’s March 2025 NCD issue offers good interest rates and is suitable for investors looking for bond investments. However, since it is an NBFC NCD, there are some risks. Investors willing to take risks for higher returns can consider investing, but those who prefer safer options should look into AAA rated NCDs or bank FDs.
Frequently asked questions (FAQ)
1) What is the minimum investment in Kosamattam Finance NCD?
The minimum investment is 10 NCD (£10,000).
2) Is Kosamattam Finance NCDS safe?
These are protected NCDs rated a-/stable, but with no risk.
3) How will interest be paid on Kosamattam Finance NCDS?
Investors can choose to pay monthly or cumulative interest.
4) Can I finish before maturity?
Yes, it can be sold on BSE, but it may be less liquid.
5) Are NCDS interests taxable?
Yes, the interest earned is taxable according to your income tax slab.
6) What are the risks of Kosamattam Finance NCDS?
NBFCs take business risks and can face liquidity issues in unfavourable market conditions.
7) How do I apply for Kosamattam Finance NCDS online?
You can apply through your Demat account through brokers such as Zerodha, ICICI Direct, HDFC Securities and more.
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