Kosamattam Finance NCD November 2019 – Interest Rates, Effective Yields

Kosamattam Finance NCD November 2019 - Interest Rates, Effective Yields

Kosamattam NCD Offer Secured NCDs

Kosamattam Finance Limited is coming with a new NCD scheme. It is scheduled for subscription on 11th November 2019. The new NCD offers up to 10.25 percent of interest rates. Moreover, It provides high yields of over 10.75 percent. The experienced investment experts said that the investors may double their money by investing in this scheme. Interested investors should consult your investment advisor before invest. The other details of  Kosamattam Finance NCD November 2019 available here. 

Basic Details Of Kosamattam Finance NCD 

 Scheme  Name  Kosamattam Finance NCD November 2019
 Security Name  Kosamattam Finance Limited 
 Subscription Period  Nov 11, 2019 – Dec 11, 2019
 Type of Issue  Secured NCDs
 Interest Rates and High Yields  10.25% and 10.75%

The scheme opened for subscription on 11th November. These NCDs are secured and unsecured redeemable NCDs. The promoters of the scheme registered it at Karvy Fintech Pvt. Ltd. Kosamattam NCD will close for subscription on 11th December 2019. The total size of the issue is Rs 350 crore. It plans to raise over Rs 175 crore with an option of retaining oversubscription up to Rs 175 crore. 

Objects Of The Issue

As of the NDC draft prospectus, the firm stated as net incomes of the issue will utilize towards onward lending and the repayment of interest as the primary objective. The second one is for general corporate purposes. 

Minimum Investment

Investors who want to invest in this scheme will invest a minimum of Rs 10,000 (10 bonds) and in multiples of 1 bond. 

It is available for 18, 24, 48, 66, and 84 months tenure. The face value of the scheme is Rs 1000 per NCD bond. 

Coupon Rates

Series  Category  Tenures in Months  Interest Payments  Coupon Rates  Effective Yields  Maturity Value
  I  Secured  18  Cumulative  NA  9.26%  1,142
 II  24  Monthly  9.75%  10.20%  1,000
 III  36  10.00%  10.47%
 IV  Cumulative  NA  10.52%  1,350
 V  48  NA  10.67%  1, 500
 VI  66  NA  10.71%  1,750 
 VII  84  Monthly  10.25%  10.75%  1,000
 VIII  Cumulative  NA  10.41%  2,000

The Scheme is reserved for qualified institutional investors, non-institutional investors, and retail investors. As of the report, the 10% of issue size reserved for QIB, 40% for NII, and 50% of issue reserved for Retail investors.

The proposed NCDs have been rated as ‘IND BBB‘ by India Ratings and Research Pvt. Ltd.  This type of rating indicates that instruments with this rating are considered to have a moderate level of safety about appropriate servicing of financial obligations. These NCDs listed on Bombay Stock Exchange.

Disclaimer: This article provides information about the scheme. It does not give any advice or recommendation. Please consult your financial adviser before investing.

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