Kosamattam Finance NCD Offer - July 2014 (Avoid)

This finance sector company from Kerala and registered as NBFC (Non Banking Finance Company), FFMC (Full -Fledged Money Changer) and Depository Participant is once again coming out with NCD offer to raise Rs. 150 crore. The base size of the issue is Rs. 100 crore and has permission to retain oversubscription to the tune of Rs. 50 crore making the total issue size Rs. 150 crore.

The company is coming out with a Secured, redeemable Non-Convertible Debentures having a face value of Rs. 1000 and coupon rates of 11.50%-12% and tenure of 400 days to 70 months. It offers Monthly and Cumulative payment options bearing yield of 12% to 13.80%. Minimum application is to be made for 10 NCDs (i.e. Rs. 10000) and in multiple of 1 NCD thereon, thereafter. The issue opens for subscription on 18.07.14 and will close on or before 12.08.14. Issue is rated by CARE as CARE /BBB- indicating at moderate degree of safety regarding timely servicing of financial obligations. Such instruments also carry moderate credit risk. As on 31.03.2014 the company's net worth is Rs. 174 crore and its total debt were to the tune of Rs. 1199 crore.

Issue is lead managed by Vivro Financial Services Pvt Ltd and Karvy Computershare Pvt Ltd is the registrar to the issue. IL&FS Trust Company Ltd is the Debenture Trustee.


Conclusion / Investment Strategy

Considering poor rating and higher debt of the company, this issue is not worth for investment.

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 July 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 July 2014 worth investing. The Kosamattam Finance NCD July 2014 Note sets the NCD expectations in systematic way which tells you if Kosamattam Finance NCD July 2014 good to buy (good or bad / yes or no). The NCD Forecast tells you weather to invest in Kosamattam Finance NCD July 2014 by providing NCD recommendations i.e. subscribe, avoid and neutral.


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