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Kosamattam Finance NCD Offer Review - March 2017 (May apply)

Kosamattam Finance Ltd Logo

Kosamattam Finance Ltd (KFL) is a frequent visitor to the debt market since past few years. It is primarily engage in gold loan business, but off late it also offers fee based ancillary services which include money transfer services, foreign currency exchange, power generation, agriculture and air ticketing services.

To part finance its repayment of existing loans and interest as well as onward lending and general corpus fund needs, the company is coming out with its 10th NCD offer to mobilize Rs. 125 crore with a greenshoe option to retain hundred per cent additional amount, thus making it a offer for Rs. 250 crore. It opens on 29.03.17 and will close on or before 27.04.17. Issue is solely lead managed by Vivro Financial Services Pvt Ltd and Vistra ITCL (India) Ltd is the debenture trustee. Karvy Computershare Pvt Ltd is the registrar to the issue. Post allotment, NCDs will be listed on BSE within 12 days of issue closing date. NCDs have face value of Rs. 1000 each and minimum application is to be made for 10 NCDs (Rs. 10000) and in multiple of 1 NCD (Rs. 1000) thereon, thereafter. NCDs have tenure of 400 days, 18 months, 36 months, 52 months, 60 months and 86 months and the interest payment options are Monthly/Cumulative as per the choice of the investors. (While 400 days, 52 months and 86 months have only cumulative option, 60 months has only monthly option. Other tenures have monthly or cumulative options). It offers coupon rates ranging from 9 per cent to 10 per cent depending on the tenure and the option. For the period ended 30.09.16 it had a capital adequacy ratio of 12.09% (Tier-I) and 5.82% (Tier-II) and its net NPAs stood at 0.25% as the end of the said period. Mode of allotment will be either demat or physical as per investors’ choice, however, trading will take place only in demat mode. Its debt-equity ratio will stand enhanced from 10.08 to 11.44 post this issue.

This offer is for secured, redeemable non-convertible as well as un-secured non-convertible debenture offer that has been graded as IND BBB- (triple B minus) by India Rating and Research Pvt Ltd. The rating 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.


Conclusion / Investment Strategy

Considering poor grading, only risk savvy investors may invest in this offer.

Review By Dilip Davda on Nov 22, 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 March 2017 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 March 2017 worth investing. The Kosamattam Finance NCD March 2017 Note sets the NCD expectations in systematic way which tells you if Kosamattam Finance NCD March 2017 good to buy (good or bad / yes or no). The NCD Forecast tells you weather to invest in Kosamattam Finance NCD March 2017 by providing NCD recommendations i.e. subscribe, avoid and neutral.


1 Comments

1. sunil bansal  May 12, 2017 16:30
plz tell me rate KOSAMATTAM FINANCE LIMITED