Kosamattam Finance NCD Offer - Sep 2014 (Avoid)

A gold finance sector unlisted company from South is once again coming out with a debt offer of NCDs with a base sum of Rs. 100 crore having an option to retain oversubscription up to 100% taking the total fund raising to Rs. 200 crore.

To meet its fund requirement, the company is offering NCDs having face value of Rs. 1000. This NCD offer has already opened for subscription on 30.09.14 and will close on or before 29.10.14. Minimum application is to be made for 10 NCDs (i.e. Rs. 10000) and in multiples of 1 NCD thereon, thereafter.

This instrument is having option of demat as well as physical mode. But trading will take place only in demat mode. Post allotment, it will be listed on BSE. Issue is lead managed by Vivro Financial Services Pvt Ltd and Karvy Computershare Pvt Ltd is the registrar to the issue. IL & FS Trust Co. Ltd. is the Debenture Trustee. This instrument carries coupon rates ranging between 11.75% to 13% and tenure of 18, 36 and 66 months. Eligible employees, Ex-Serviceman will be offered additional incentive of 0.50% for 18 and 36 months respectively.

This offer is rated as CARE BBB- (triple B minus) by CARE indicating at moderate degree of safety regarding timely servicing of financial obligations. Such instruments carry moderate credit risk.

This is the 3rd Debt offer from this company since April 2014.


Conclusion / Investment Strategy

Considering poor rating and unlisted status, this offer is not worth even though it offers lucrative coupon rates.

Reviewer recommends Avoid to the issue.

Review By Dilip Davda on Dec 10, 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 Sept 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 Sept 2014 worth investing. The Kosamattam Finance NCD Sept 2014 Note sets the NCD expectations in systematic way which tells you if Kosamattam Finance NCD Sept 2014 good to buy (good or bad / yes or no). The NCD Forecast tells you weather to invest in Kosamattam Finance NCD Sept 2014 by providing NCD recommendations i.e. subscribe, avoid and neutral.


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