Kosamattam Finance Limited has launched its much-anticipated Non-Convertible Debenture (NCD) issue, opening new avenues for investors seeking attractive yields coupled with security. The issue opened on July 7, 2025, and closes on July 18, 2025, with an issue price fixed at ₹1000 per NCD. This fresh tranche of secured, redeemable NCDs comes with a base issue size of ₹100 crore and offers investors competitive annual interest rates up to 10.41%, making it a lucrative choice in the fixed-income segment.
Important Issue Details
- Issue Open Date: July 7, 2025
- Issue Close Date: July 18, 2025
- Issue Size: ₹100 crore (base size)
- Price Band: ₹1000 per NCD
- Interest Rate: Up to 10.41% per annum
- Tenure Options: 18, 36, 42, 50, 60, and 84 months
- Listing: BSE platform
- Minimum Investment: 10 NCDs (₹10,000)
- Credit Rating: IND A by India Ratings & Research Pvt Ltd
- Allotment: Basis of first-come-first-served
About Kosamattam Finance Limited
Kosamattam Finance Limited is a reputed non-banking financial company (NBFC) incorporated in 1987, with a strong presence in the Indian financial services sector. Based in Kottayam, Kerala, the company primarily focuses on secured lending, particularly in the gold loan segment, which forms the backbone of its business model. It has built trust over decades by offering reliable financial solutions underpinned by asset-backed lending. Kosamattam Finance is well-regarded for its prudent risk management and focus on asset quality.
Business Overview and Financial Strength
The company’s revenue model is largely centered on interest income from its lending operations, especially gold-backed loans, which offer relatively low credit risk owing to the collateralized nature of the loans. Apart from gold loans, Kosamattam Finance also offers loan products like personal loans, business loans, and vehicle loans, diversifying its revenue streams.
Financial performance for the fiscal year ending March 31, 2024, reflected robust growth and profitability:
- Total Income from Operations: ₹857.83 crores, up 9.7% from the previous year
- Profit After Tax: ₹113.70 crores
- Net Worth: ₹927.57 crores
- Debt to Equity Ratio: 5.39 indicating an optimal leveraging level typical for NBFCs
- Earnings Per Share: ₹5.10 per equity share
The company’s focus on asset quality, prudent credit evaluation, and diversification has helped maintain consistent profitability. Kosamattam Finance has strengthened its reserves and premium accounts, reflecting a solid financial foundation necessary to back this NCD issuance.
Why Invest in Kosamattam Finance NCDs?
- Attractive Yields: The interest rates of up to 10.41% p.a. are considerably higher than traditional fixed deposits, providing investors superior returns.
- Secured Debentures: These NCDs are backed by qualified security, reducing risk compared to unsecured credit instruments.
- Flexible Tenures: Multiple tenure options from 18 months to 84 months allow investors to match NCD investments to their financial planning horizon.
- Regular Income: The company offers options for monthly or cumulative interest payouts, catering to investors needing steady income or long-term capital growth.
- High Credit Rating: The IND A rating emphasizes good credit quality and reasonable safety for investors.
- Accessible Lots: A minimum investment of ₹10,000 makes it accessible for retail investors.
- Listed Security: Listing on the BSE ensures liquidity post-issuance.
How to Apply?
Interested investors can apply through their Demat accounts both online and offline. Application forms are available for download, and payments can be made via cheque or demand draft submitted to authorized collection centers. Allotment will be on a first-come-first-served basis, urging prompt application to avoid missing out.
