Public Issue of Secured and Unsecured Redeemable Non- Convertible Debentures of Rs. 115 Cr with an option to retain over subscription upto Rs. 115 Cr aggregating to Rs. 230 Cr  by Kosamattam Finance Limited (CREDIT RATING: CARE ‘BB+’ [Double B Plus] by CARE

 Product Note

Kosamattam Finance Limited NCD Issue Highlights 
IssuerKosamattam Finance Ltd -
Type of InstrumentSecured NCD & UnSecured NCD
Issue Open26 Oct 2015
Issue Close26 Nov 2015 (with option of early closure or extension)
Issue Size115 Cr. with an option to retain oversubscription of 115 Cr. Total 230 Cr
Face ValueRs. 1,000
Min. Application Size10 Bonds (Rs.10000) & multiply of 1 NCD thereafter (across all series NCD)
Interest Annually, Various Option
Mode of AllotmentD'mat as well as Physical Form
Rating CARE - "BB+" (Double B Plus)
ListingProposed on BSE
Interest on Application on Amount Allotted
Interest on Application on Amount to be refunded

Specific Term of Issue

Secure Category

OptionsIIIIIIIVVVI
SecureSecureSecureSecureSecureSecure
Tenor400 Days18 M18 M36 M45 M60 M
Coupon Rate- Cat I,II, IIINA10.50%NA11.00%NA11.25%
Face Value100010001000100010001000
Maturity11111000+ accrued Interest1165.511000+ accrued Interest15001000+ accrued Interest
Interest PaymentCumulativeMonthlyCumulativeMonthlyCumulativeMonthly
Effective Yield10.08%11.02%10.75%11.57%11.42%11.85%

Unsecure

OptionsVIIVIII
UnSecureUnSecure
Tenor75 M75 M
Coupon Rate- Cat I,II, III11.50%NA
Face Value10001000
Maturity1000+ accrued Interest2000
Interest PaymentMonthlyCumulative
Effective Yield12.13%11.73%
  •  The NCDs can applied for allotment in either dmat or physical forms by all categories of investors. 

 

 Cheque Details :

Cheque / DD should be drawn in favour of  “KOSAMATTAM FINANCE LIMITED -NCD Public Issue  “ by all applicant

About Issue

About Company

  • Kosamattam Finance Ltd. (KFL/ Company), headquartered in the southern Indian state of Kerala, is registered with RBI as a non-deposit taking, systematically important, NBFC, lending money against pledge of used household gold jewellery (“Gold Loans”) in the state of Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Delhi,Maharashtra,Gujarat,Telangana and in the Union Territory of Puducherry.
  • 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.
  • As on December 31, 2014, KFL is having a branch network of 875 branches, largely spread across Southern India. The Gold Loan portfolio of KFL as of November 30, 2014 is comprised of 4,32,530 gold loan accounts, aggregating Rs.1,10,160.97 lacs which is 95.85 % of total loans portfolio.
  • Gross non-performing gold loan assets were 0.91%, 0.17%, 0.31% and 0.36% of portfolio under management as of November 30, 2014, March 31, 2014, 2013 and 2012 respectively.
  • As of November 30, 2014, the average loan amount advanced by KFL was Rs. 25,469 per loan transaction. All of the Gold Loans have a term of 12 months with an option to early closure. In the financial period ended November 30,2014, the yield on Gold Loan assets was 20.55%.
  • In addition to the core business of Gold Loan, KFL also offers fee based ancillary services which includes money transfer services, foreign currency exchange and air ticketing services.

 

Apply

WHO CAN APPLY

Category:1  

  • Resident Public Financial Institutions as defined in Section 2(72) of the Companies Act 2013, Statutory Corporations including State Industrial Development Corporations, Scheduled Commercial Banks
  • Co-operative Banks and Regional Rural Banks, which are authorized to invest in the NCDs
  • Provident Funds of minimum corpus of Rs. 2,500 Lacs , Pension Funds of minimum corpus of Rs. 2500 Lacs,Superannuation Funds and Gratuity Fund,which are authorized to invest in the NCDs
  • Venture Capital funds and/ or Alternative Investment Funds registered with SEBI
  • Insurance Companies registered with the IRDA
  • National Investment Fund (set up by resolution no. F. No. 2/3/2005-DDII dated November 23, 2005 of the Government of India and published in the Gazette of India)
  • Insurance funds set up and managed by the Indian army, navy or the air force of the Union of India or by the Departmentof Posts, India
  • Mutual Funds, registered with SEBI

Category:2 

  • Companies falling within the meaning of Section 2(20) of the Companies Act 2013; bodies corporate and societies registered under the applicable laws in India and authorized to invest in the NCDs
  • Educational institutions and associations of persons and/or bodies established pursuant to or registered under any central or state statutory enactment; which are authorized to invest in the NCDs
  • Trust including Public/private charitable/religious trusts which are authorized to invest in the NCDs
  • Association of Persons
  • Scientific and/or industrial research organisations, which are authorized to invest in the NCDs
  • Partnership firms in the name of the partners
  • Limited liability partnerships formed and registered under the provisions of the Limited Liability Partnership Act,2008 (No. 6 of 2009)

Category:3 

  • Resident Indian individuals and Hindu undivided families through the Karta aggregating to a value exceeding Rs. 5Lacs
  • Resident Indian individuals
  • Hindu undivided families throughthe Karta(Applications aggregating to a value not more than Rs. 5 Lacs

Objects

 

OBJECTS OF THE ISSUE
     The Company is in the business of gold loan financing, and as part of its business operations, it raises/avails funds for onward lending and for repayment of interest and principal of existing loans.
     The following table details the objects of the Issue and the amount proposed to be financed from the Net Proceeds:

Sr.No Objects of the Fresh Issue Percentage of amount proposed to be
financed from Issue Proceeds
1 Onward lending and for repayment of interest and principal of existing loans atleast 75%
2 General Corporate Purposes* upto 25%
                                                                                        Total 100%

*The Net Proceeds will be first utilized towards the Objects mentioned above. The balance is proposed to be utilized for general corporate purposes, subject to such utilization not exceeding 25% of the amount raised in the Issue, in compliance with the Debt Regulations.

Listing

NCDKosamattam Finance Ltd
Issue Open26 Oct 2015
Issue Close20 Nov 2015
Issue RegistrarKarvy Computershare
Allotment Date1.12.2015
Listing Date4.12.2015
Listing Exchange BSE
Circular Ref NoBSE - 20151203-7

OptionIIIIIIIVVVIVIIVII
COUPONNA10.50%NA11.00%NA11.25%11.50%NA
Period400 Days18 M18 M36 M45 M60 M75 M75 M
ISIN NoINE 403Q07276 INE 403Q07284INE 403Q07292INE 403Q07300INE 403Q07318INE 403Q07326INE 403Q08043INE 403Q08050
BSE Script 935550935552935554935556935558935560935562935564
Maturity111110001165.5110001500100010002000
Maturity Date04.01.201731.05.201731.05.201730.11.201831.08.201930.11.202028.02.202228.02.2022
FrequencyCumulativeMonthlyCumulativeMonthlyCumulativeMonthlyMonthlyCumulative

[/wptabcontent]

 

Subscription 

Cat 1Cat 2Cat 3Total
Issue Size (Cr)2392115230
11 Nov 14Subscribe--50.07134.19184.26
Unsubscribe2341.93-45.74
No of time-0.551.170.80
3 NovSubscribe-40.2197.07137.28
Unsubscribe2351.7917.9392.72
No of times-0.440.650.60
2 NovSubscribe-35.3684.70120.06
Unsubscribe2356.6430.30109.94
No of Times-0.380.740.52
30 Oct Subscribe (Cr.)-33.4175.04108.45
Unsubscribe23 Cr58.5939.96121.55
No of Times-0.370.660.47

[/wptabcontent]

 

For any query , Kindly Write to us at

                       rajendra@puneinvest.com or

                          Call Rajendra 7719917444

[/wptabcontent]