Public Issue of Secured and Unsecured Redeemable Non- Convertible Debentures of Rs. 100 Cr. with an option to retain over subscription upto Rs. 100 Cr aggregating to Rs. 200 Cr. by Kosamattam Finance Limited (CREDIT RATING: CARE ‘BB+’ [Double B Plus] by CARE.

[wptabs mode=”horizontal”]

[wptabtitle] Product Note[/wptabtitle] [wptabcontent]

Kosamattam Finance Limited NCD Issue Highlights

IssuerKosamattam Finance Limited
Type of InstrumentSecured and Unsecured, Redeemable Non-Convertible Debentures
Issue Open 29th August, 2016
Issue Close 27th Sep., 2016*
Issue SizeBase Issue size of Rs. 10,000 Lacs, with an option to retain over subscription of Rs.10,000 Lacs, aggregating to a total of Rs. 20,000 Lacs The Company shall ensure that Secured NCDs shall be allotted for a value upto Rs.20,000lacs and Unsecured NCDs shall be allotted for a value upto Rs. 1,000 lacs, subject to the total issue size not exceeding Rs.20,000 lacs
Face ValueRs. 1,000
Min. Application SizeRs. 10,000/- or 10 NCDs (for all Series of NCDs either taken individually or collectively)
InterestAnnually & Cumulative
Mode of AllotmentIn Dematerialized form and Physical form, at the option of the Applicant
RatingCARE BB+ [CARE Double B Plus]
ListingBSE Limited

Specific Term of Issue 

Kosamattam Finance Ltd NCD Interest Rate for Secured Option  (Option VII & VIII unsecured Category)

Tenure400 Days18 Month18 Month36 Month36 Month48 Month
Interest Payment FrequencyCumulativeMonthlyCumulativeMonthCumulativeCumulative
Effective Yield9.25%10.20%9.77%11.30%10.75%10.67%
Maturity Amount1101.811000115010001358.411500


 Cheque Details :

Cheque / DD should be drawn in favour of  “—————- “ by all applicant



[wptabtitle] About Issue[/wptabtitle] [wptabcontent]

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, Kosamattam Finance Ltd 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.



[wptabtitle] Apply[/wptabtitle] [wptabcontent]

WHO CAN APPLY – Kosamattam Finance Ltd NCD Issue


  • 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


  • 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)


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


[wptabtitle] Objects[/wptabtitle] [wptabcontent]

     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.NoObjects of the Fresh IssuePercentage of amount proposed to be
financed from Issue Proceeds
1Onward lending and for repayment of interest and principal of existing loansatleast 75%
2General Corporate Purposes*upto 25%

*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.


[wptabtitle] STRENGTHS & STRATEGIES [/wptabtitle]



  • Part of the Kosamattam Group which has a long operating history and a large customer base.
  • Branch network across rural and semi-urban areas in South India.
  • Organized and efficient IT Infrastructure
  • Effective risk management system including appraisal, internal audit and inspections.
  • Experienced management team and skilled personnel


  • Expansion of business by opening new branches in rural and semi urban areas to tap potential market for gold loans
  • Expansion of business into metros and select Tier 1 cities across India
  • Increase visibility of Kosamattam Brand to attract new customers
  • Diversifying into new business initiatives by leveraging branch network and customer base.
  • Minimize concentration risk by diversifying the Product Portfolio and expanding customer base
  • Further strengthening risk management, loan appraisal and technology systems



[wptabtitle] Listing [/wptabtitle]

NCDKosamattam Finance Ltd
Issue Open29 Aug 2016
Issue Close27 Sep 2016
Issue RegistrarKarvy Computershare
Listing ExchangeBSE / NSE
Allotment Date29 Sep 2016
Listing Date5 Oct 2016
Interest Payment Date
Face Value1000
Circular Ref. NoBSE- 20161004-24

Effective Yield9.25%10.20%9.77%11.30%10.75%10.67%11.57%11.25%
ISIN NoINE 403Q07490INE 403Q07508INE 403Q07516INE 403Q07524INE 403Q07532INE 403Q07540INE 403Q08068INE 403Q08076
BSE Code935872935874935876935878935880935882935884935886
Maturity Amt1101.811000115010001358.41150010002000
Security Desc.SecuredSecuredSecuredSecuredSecuredSecuredUnSecuredUnSecured



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