Kosamattam Non-Convertible Debentures Scheme In July
Kosamattam Finance, one of the leading Gold Loan providers in India. It is a non-banking finance company that has raised about Rs 150 crore from the capital market through an issue of Secured NCDs and Unsecured Subordinated Non-convertible Debentures. This non-banking Finance company operating from Kerala and has a presence across south India.
Features of Kosamattam Finance NCD July 2019
|Issue Open||July 16, 2019, to August 14, 2019|
|Security Name||Kosamattam Finance Ltd|
|Security Type||Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) and/or Unsecured Subordinated Non-Convertible Debentures (Unsecured NCDs)|
|Issue Size (Base)||Rs 150.00 Crores|
|Issue Size (Shelf)||Rs 150.00 Crores|
|Issue Price||Rs 1000 per NCD|
|Face Value||Rs 1000 each NCD|
|Minimum Lot size||10 NCD|
|Market Lot||1 NCD|
|Credit Rating||IND BBB’ Outlook Stable, by India Rating and Research Private Limited (“India Rating”).|
|Tenor||400 days/24 months/48 months/60 months/84 months|
|Series||Series I to Series VIII|
|Payment Frequency||Cumulative and monthly.|
|Basis of Allotment||First Come First Serve Basis|
Kosamattam Finance NCD opened for subscription on 16th August and will close on 14th August. The size of the issue is RS 150 crore. Moreover, there is a chance to retain another Rs. 150 crore aggregation to Rs 300 crores. The NCDs offer interest rates start from 9.75% to 10.25%. The offer price is fixed at Rs 1,000 per NCD and the bid lot is margin at 10. Investors should invest for a minimum of Rs 10,000. The company has been fixed a face value of Rs 1,000 per NCD. Both Secured NCDs are available for 400days, 24 months, 48 months, 60 months, and 84 months tenor. It has monthly and cumulative Interest payment methods. Kosamattam NCDs are liquid investments and NCD bonds should be listed on BSE. This offer is led manage by Karvy Investor Services Limited and SMC Capitals Limited.
Note: Non-resident Indians (NRI’s) are not eligible for this NCD.
Objects of the Issue:
1. For onward lending,
2. Repayment of interest and principal of existing loans,
3. General Corporate Purposes
The company will use net proceeds raised from the Issue is 55 % for Onward lending, 20 % for repayment of interest and principal of existing loans, and 25 % for General corporate purposes.
|Category 1 (QIB)||150,000|
|Category 2 (NII)||600,000|
|Category 3 (HNI)||750,000|
|Category 4 (RII)||0|
Coupon Rates Offered In Kosamattam Finance July NCDs
|Series 1||Series 2||3rd Series||Series 4||Series 5||6th Series||Series 7||Series 8|
|Frequency of Interest Payment||Cumulative||Monthly||Cumulative||Monthly||Cumulative|
|Tenor in Months||400 Days||24||36||48||60||84|
|Coupon Rate (Retail) For Category I & II/ for III & IV||NA||9.75%||10%||NA||10%||10.25%||NA|
|Amount on Maturity For Category I & II/ for III & IV||₹1,101.81||₹1,000||₹1,350||₹1,500||₹1,000||₹2,000|
Credit Ratings for NCDs
The Issue has been rated ‘IND BBB’ Outlook Stable, by India Rating and Research Private Limited (“India Rating”) for an amount up to Rs 30,000 lakhs vide its letter dated June 26, 2019. The rating of NCDs by India Ratings indicates that instruments with this rating are considered to have a moderate degree of safety regarding timely servicing of financial obligations. Such instruments carry moderate credit risk.
Prospectus Details of Kosamattam NCD
Kosamattam Finance July 2019 Registrar
Karvy Computershare Private Limited
Karvy Registry House, 8-2-596, St. No. 1,
Banjara Hills, Hyderabad – 500 034
Andhra Pradesh, India
Email: [email protected]
About the Company:
Kosamattam Finance Limited is a systemically important non-banking finance company. The main purpose of the company is to provide Gold Loan Business and Lending money against the Pledge of Household Jewellery in the state of Kerala.