Kosamattam Finance Limited NCD IPO

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The rating of an issuer company reflects its past growth and performance. The rating increases when the company consistently performs well and decreases when it is not performing well.

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

Moderate risk

BBB+, BBB, BBB-, BB+, BB

High risk

BB-, B+, B, B-, C, D

The rating agency for this Bond is IRRPL.

About

Kosammattam Finance is a middle-layer non-banking financial company (NBFC ML) registered with the Reserve Bank of India (RBI). The company primarily offers gold loans, which are secured personal and business loans against gold jewellery and ornaments. These loans are extended to individuals, businessmen, vendors, traders, farmers, salaried individuals and families, under the company’s various gold loan products to help them address their short-term liquidity needs. The company operates in the states of Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Maharashtra, Uttar Pradesh and Telangana, along with the Union territories of Puducherry and Delhi. The company also has a full-fledged money-changers license, which is valid till August 31, 2025. The current chairman and managing director, Mathew K Cherian, is a fourth-generation entrepreneur in the family. The company has 975 branches as of May 31, 2025. Use of Proceeds The proceeds from the current issue of NCDs are proposed to be used for the following purposes: For onward lending Repayment of interest and principal of the existing debts availed of by the company General corporate purposes;

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Kosamattam Finance is headquartered in Kottayam, Kerala, and has 975 branches spread largely across southern India.

The company’s gold loan portfolio for the financial years ending on March 31, 2025, March 31, 2024 and March 31, 2023 comprised 10,84,495, 9,16,079 and 8,82,414 gold loan accounts, respectively, aggregating to ₹5,71,223.87 lakhs, ₹5,32,434.31 lakhs and ₹4,84,502.31 lakhs, respectively.

For the financial years ended March 31, 2025, March 31, 2024 and March 31, 2023, the company’s average yields on gold loan (principal) assets were 16.91%, 17.66% and 18.66%, respectively.

Besides their core business of gold loans, the company also offers fee-based ancillary services, including microfinance, money transfer, foreign currency exchange, power generation, agriculture and air ticketing.

The company claims that its gold loan schemes are designed in such a way that higher per-gram rates are offered at higher interest rates, and vice versa, subject to applicable laws. This enables its customers to choose the scheme of their choice. The company revises these schemes from time to time based on the rates of gold, market conditions, and regulatory requirements.

The company reported 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 NCD

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