Kosamattam Finance Limited IPO

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AAA, AA+, AA, AA-, A+, A, A-

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The rating agency for this Bond is IRRPL.

About

Kosamattam Finance Limited is a non-deposit-taking, non-banking financial company – middle layer (NBFC-ML) — primarily engaged in providing gold loans by lending money against the pledge of household jewellery. The company operates across Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Maharashtra, Uttar Pradesh, and Telangana, along with the Union Territories of Puducherry and Delhi. The company also offers ancillary services, including microfinance, money transfer, foreign currency exchange, power generation, agriculture, and air ticketing. As of December 31, 2025, the company operated 981 branches and employed 3,924 people. The company is headquartered in Kottayam, Kerala, and is part of the Kosamattam Group led by Mathew K Cherian. Use of Proceeds The proceeds from the current issue of NCDs are proposed to be used for the following purposes: Onward lending—at least 40 percent of the net proceeds (as per the prospectus). Repayment of interest and principal of existing debts— up to 35 percent of the net proceeds. General corporate purposes—maximum up to 25 percent of the net proceeds.;

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Kosamattam Finance is part of the Kosamattam Group, which claims to be one of the leading business and financial services groups in South India. The company reports consistent growth in its gold loan customer base, increasing from 8,82,414 customers in FY23 to 9,16,079 in FY24, 10,84,495 in FY25, and 11,61,655 as of September 30, 2025. It attributes this growth to its focus on market penetration in underserved regions and its streamlined loan procedures.

As of December 31, 2025, the company operated 981 branches across seven states and two Union Territories. It focuses on serving semi-urban and rural regions with lower credit penetration, providing gold loan services to retail customers, traders, farmers, and salaried individuals. The wide network allows the company to serve customers from proximate locations and expand further into southern India.

The company claims to use information technology as a strategic tool to enhance productivity, efficiency, and regulatory compliance. All branches are computerised, and new software has been introduced to expand operations and improve transaction efficiency. Kosamattam Finance states that these systems enable effective risk monitoring, customer management, and operational control.

Kosamattam Finance claims to have an organised risk management framework with regular audits and inspections across its branches. Each branch reportedly undergoes monthly gold audits and quarterly account audits to maintain internal control standards. The company also states that its staff follows specific procedures, such as sound and acid tests, to assess the quality of pledged ornaments before approving loans.

The company has experienced a consistent increase in revenue from operations and profit after tax (PAT). Revenue from operations increased from Rs 782.22 crore in FY23 to Rs 857.84 crore in FY24 and Rs 899.98 crore in FY25. PAT increased from Rs 107.05 crore in FY23 to Rs 113.70 crore in FY24 and Rs 127.06 crore in FY25.

Kosamattam Finance Limited

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