Kosamattam Finance seeks Sebi nod for Rs 230-cr NCD issue

Kosamattam Finance, which is into gold loan financing, plans to raise up to Rs 230 crore through a public issue of non-convertible debentures (NCDs).
The Kerala-based firm has filed initial documents with the Securities and Exchange Board of India (Sebi) for the approval of the public issue.
NCDs are loan-linked securities issued by a company and cannot 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 11,500 lakh...With an option to retain over-subscription up to Rs 11,500 lakh aggregating up to Rs 23,000 lakh".

Kosamattam plans to use the proceeds from the issue for the purpose of "onward lending and for repayment of interest and principal of existing loans as well as 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.
Vivro Financial Services is the lead manager to the issue, while IL&FS Trust Company is the debenture trustee. Karvy Computershare would act as the registrar to the issue, the offer documents showed.
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 the Union Territory of Puducherry.