Kosamattam Finance's NCD issue opens for subscription

Kerala-based NBFC firm Kosamattam Finance today opened the public issue of non-convertible debentures (NCDs) to raise up to Rs 200 crore.
The issue will be available for subscription till March 11.
NCDs are loan-linked securities issued by a company and can't be converted into stocks. They usually carry a higher interest rate than a convertible debenture.
As per the draft prospectus filed with Sebi, the firm would issue "secured, redeemable, non-convertible debentures and unsecured redeemable non convertible debentures of face value of Rs 1,000 each aggregating up to Rs 10,000 lakh... with an option to retain over-subscription up to Rs 10,000 lakh aggregating up to Rs 20,000 lakh".

Kosamattam plans to use the proceeds from the issue for the purpose of lending and for repayment of existing loans as well as for general corporate purposes.
"Our company is in the business of gold loan financing, and as part of our business operations, we raise/avail funds for onward lending and for repayment of interest and principal of existing loans," Kosamattam said.

According to the firm, the NCDs offered "are proposed to be listed on the BSE".
The issue is being managed by Vivro Financial Services.
Kosamattam Finance, a part of Mathew K Cherian-led Kosamattam Group, is into the business of lending money against jewellery in Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Delhi, Maharashtra, Gujarat, Telangana and in the Union Territory of Puducherry.

As on December 31, 2014, the firm had a network of 875 branches spread across states, including Kerala, Tamil Nadu, Karnataka, Andhra Pradesh and Delhi.