Kosamattam Finance plans to issue secured NCD bonds in November 2024. As India’s prominent NBFC specializing in gold loans, Kosamattam Finance offers attractive interest rates of up to 10.25%, with yields reaching 10.75%. NCDs are available for tenors between 18 and 84 months, with interest payments provided either monthly or cumulatively. Should you consider investing in Kosamattam Finance NCD – November 2024? Let’s take a closer look.
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 – Issued November 2024 Details
| Subscription date | November 25, 2024 – December 6, 2024 |
| 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 publication 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, 60, 84 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 November 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 | 60 | 48 | 84 |
| Coupon (% per year) | N.A. | 9.25% | N.A. | 10.00% | N.A. | 10.25% | N.A. | N.A. |
| Effective yield (%/year) | 9.00% | 9.65% | 9.41% | 10.47% | 9.75% | 10.75% | 10.67% | 10.41% |
| Amount at maturity (Rs.) | 1,138.00 | 1,000.00 | 1,252.00 | 1,000.00 | 1,353.00 | 1,000.00 | 1,500.00 | 2,000.00 |
What is Kosamattam Finance NCD Credit Rating – November 2024?
These NCDs are rated IND A-Stable by India Ratings & Research Private Limited, indicating that products with this rating are considered to be sufficiently secure for timely repayment of financial obligations. Masu. 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 ending March 2022 – Rs 8,000 crore
- Year ended March 2023 – Rs.107.05 billion
- Year ending March 2024 – Rs 11.37 billion
Kosamattam Finance NCD – Why invest in November 2024?
- These Kosamattam NCDs offer attractive interest rates where investors can earn up to 10.25% interest and up to 10.75% yield per annum.
- Kosamattam Finance generates stable profits. Investors should always invest in companies that generate stable profits.
- Issue a secure NCD. These NCDs are safe compared to other unsafe NCDs. If a company liquidates/goes out of business for any reason, a secure NCD investor will have preferential repayment of the capital along with interest as it is backed by the company’s assets. 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 November 2024?
- The company has a credit rating of A-/Stable from India Ratings. However, the credit rating was BBB until 2022. Bonds with credit ratings below A grade are considered very high risk.
- 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.
- In the past, there have been delays in repayment of NCD capital and interest by some NBFC companies.
- Please refer to the prospectus for the complete risk factors set out below. Kosamattam NCD November 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 November 2024 issue?
- These NCDs offer high interest rates of up to 10.25%, with yields reaching 10.75%. 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 9%, which comes with deposit insurance up to Rs. Until 2022, Kosamattam Finance NCD’s credit rating will be: BBB by BWR rating These will later be upgraded to A-/Stable.
Investors who understand both the above pros and cons and are willing to take risks can invest in such NCDs.
