Kosamattam Finance NCD Offer - Apr 2014 (Avoid)

While we have Shriram City Union NCD offer that got overwhelming response and is closed much before its scheduled, yet another NCD offer is opening on 23.04.14. Details of the same are as under:

Kosamattam Finance Ltd is a Kerala Based NBFC engaged in gold loan business and is now planning to raise Rs. 100 crore from the market via NCD offer that has opened on 23.04.14 and will close on or before 22.05.14. The company is offering Secured Redeemable Non-Convertible debentures of face value of Rs. 1000 each and has a coupon rate ranging from 12% to 13% based on tenure and the option selected by the investor. Tenure for these NCDs are for 390 days to 66 months and has monthly and cumulative schemes. Option VII is for 66 months cumulative scheme whereas options I to VI are for different options of monthly and cumulative schemes below 66 months tenure. Except option VII all other options are eligible for 50 bps extra interest for Ex-servicemen, Senior Citizens and eligible employees. Minimum application is to be made for 10 NCDs (i.e. Rs. 10000) and in multiples of 1 NCD thereafter. The company plans to raise Rs. 75 crore with an option to keep Rs. 25 crore in addition in case of oversubscription and thus the total offer size is for Rs. 100 crore. The offer is available for allotment in demat and physical mode but trading will take place only in demat mode. CARE has assigned CARE BB+ rating to this offer indicating moderate risk of default regarding timely servicing of financial obligations. Vivro Financial Services Pvt Ltd is the lead manager to the offer and Karvy Computershare Pvt Ltd is the registrar to the offer. Post allotment NCDs will be listed on BSE.


Conclusion / Investment Strategy

Although it is offering a higher rate of interest to lure investors, poor rating and unknown unlisted company with remote lead manager's mandate, it is better to keep away.

Reviewer recommends Avoid to the issue.

Review By Dilip Davda on Dec 11, 2019

Review Author

DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published here. Any reader taking decisions based on any information published here does so entirely at own risk. Investors should bear in mind that any investment in stock markets are subject to unpredictable market related risks. Above information is based on RHP and other documents available as of date coupled with market perception. Author has no plans to invest in this offer.

(SEBI registered Research Analyst-Mumbai).


About Dilip Davda

Dilip Davda, a freelance journalist

Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.

Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.

Email: dilip_davda@rediffmail.com

The Kosamattam Finance NCD April 2014 Analysis helps you to understand about the company, offer detail, valuation, capital structure and financial performance. Our SEBI registered NCD Analysts tells you if Kosamattam Finance NCD April 2014 worth investing. The Kosamattam Finance NCD April 2014 Note sets the NCD expectations in systematic way which tells you if Kosamattam Finance NCD April 2014 good to buy (good or bad / yes or no). The NCD Forecast tells you weather to invest in Kosamattam Finance NCD April 2014 by providing NCD recommendations i.e. subscribe, avoid and neutral.


1 Comments

Aris
1. Aris  May 7, 2014 23:51 I Like It. | Report Abuse Reply 0
Dear Sir,

Thank you for your valuable comments, poor rating and unknown unlisted company it tells everything.








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