Kosamattam Finance Limited, a non-deposit-taking Non-Banking Financial Company (NBFC), is a prominent player in the domain of Gold Loan services. Headquartered in Kottayam, Kerala, it operates under the esteemed Kosamattam Group, led by Mathew K. Cherian.
The core business of Kosamattam Finance revolves around providing financial solutions to a diverse clientele. They extend loans against pledges of household jewelry, catering to a wide spectrum of borrowers, including businessmen, vendors, traders, farmers, salaried individuals, and families. These services are offered across several states, encompassing Kerala, Karnataka, Tamil Nadu, Andhra Pradesh, Maharashtra, Delhi, Gujarat, Telangana, and the Union Territory of Puducherry.
Beyond their primary gold loan offerings, Kosamattam Finance diversifies its portfolio with various fee-based ancillary services. These include microfinance, facilitating money transfer services, engaging in power generation, foreign currency exchange, supporting agriculture, and providing air ticketing services.
Kosamattam Finance has a robust presence in Southern India, boasting a network of 989 branches as of June 30, 2023. Their extensive branch network underscores their commitment to serving the financial needs of the communities they operate in. With a focus on gold loans and a growing array of supplementary services, Kosamattam Finance Limited continues to be a key player in the NBFC sector, delivering valuable financial solutions and fostering economic growth in the regions they serve.
Kosamattam Finance NCD September 2023 Detail
| Issue Open | September 8, 2023 – September 22, 2023 |
| Security Name | Kosamattam Finance Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | Rs 100.00 Crores |
| Issue Size (Shelf) | Rs 200.00 Crores |
| Issue Price | Rs 1000 per NCD |
| Face Value | Rs 1000 each NCD |
| Minimum Lot size | 10 NCD |
| Market Lot | 1 NCD |
| Listing At | BSE |
| Credit Rating | IND A-/Stable by India Ratings |
| Tenor | 20, 24, 30, 36, 39, 48, 54 and 88 Months |
| Series | Series I to VIII |
| Payment Frequency | Monthly and Cumulative |
| Basis of Allotment | First Come First Serve Basis |
| Debenture Trustee/s | Vistra Itcl India Limited |
NCD Rating
The NCDs proposed to be issued under this Issue have been rated ‘IND A-/Stable’, by India Ratings & Research Private Limited.
Kosamattam Finance Limited is led by a dedicated team of promoters who have played a pivotal role in shaping the company’s journey and success. The promoters of the company are:
Mr. Mathew K. Cherian: As one of the key promoters, Mr. Mathew K. Cherian has been instrumental in driving the company’s growth and strategic direction. His vision and leadership have been integral in establishing Kosamattam Finance as a prominent player in the financial sector.
Ms. Laila Matthew: Ms. Laila Matthew, another esteemed promoter, has contributed significantly to the company’s development. Her expertise and commitment have played a vital role in shaping the company’s operational excellence and customer-centric approach.
Jilu Saju Varghese: Mr. Jilu Saju Varghese, as a promoter, brings valuable insights and contributions to the company’s success. His dedication to the company’s mission and values has been crucial in fostering a culture of innovation and continuous improvement.
Company Financials
| Period Ended | 31 Mar 2022 | 31 Mar 2023 |
| Assets | 4,568.89 | 5,444.34 |
| Revenue | 624.79 | 782.54 |
| Profit After Tax | 80.00 | 107.05 |
| Net Worth | ||
| Reserves and Surplus | ||
| Total Borrowing |
Objects of the Issue
The Kosamattam Finance Limited NCD issue in September 2023 has clear objectives for utilizing the net proceeds raised from the issuance. These objectives reflect the company’s strategic financial planning and its commitment to efficient capital allocation. Here is a breakdown of the intended uses of the funds:
Onward Lending: A significant portion of the net proceeds will be directed towards onward lending activities. This demonstrates Kosamattam Finance’s core business function, which is providing financial assistance to a diverse range of borrowers. By deploying the funds for onward lending, the company can continue to support individuals and businesses with their financial needs, including gold loans, thereby fostering economic growth in the regions it serves.
Repayment of Existing Debts: Another important allocation of funds is for the repayment of interest and principal on existing debts of the company. This strategy helps in debt management and reduces the financial burden associated with servicing existing liabilities. It enhances the financial stability of the company and contributes to its creditworthiness in the market.
General Corporate Purposes: The remaining portion of the net proceeds is allocated for general corporate purposes. This versatile category can encompass various financial needs, such as working capital requirements, operational expenses, business expansion initiatives, and other strategic investments that enhance the overall functioning and competitiveness of the company.
Overall, the allocation of funds from the NCD issue reflects Kosamattam Finance Limited’s commitment to responsible financial management. By prioritizing onward lending, debt servicing, and general corporate purposes, the company aims to maintain its strong position in the market, meet its financial obligations, and continue contributing to the economic well-being of the communities it serves.
Conclusion
The Kosamattam Finance Limited NCD (Non-Convertible Debentures) issue of September 2023 represents a unique financial opportunity for investors looking to diversify their portfolios and secure their financial future. With a trusted track record in the non-banking financial sector, Kosamattam Finance Limited continues to demonstrate its commitment to providing valuable financial solutions to individuals and businesses.
Investors who participate in this NCD offering not only stand to benefit from the potential for stable returns but also contribute to the growth and stability of Kosamattam Finance Limited. The allocation of funds for onward lending, debt servicing, and general corporate purposes underscores the company’s dedication to responsible financial management and strategic growth.