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.
Categories
Low risk:
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.
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About
Kosamattam Finance Limited is a Kerala-based non-banking financial company (NBFC) incorporated in 1987 and registered with the Reserve Bank of India as a non-deposit taking NBFC. The company primarily operates in the gold loan business and offers secured lending services through an extensive branch network, mainly concentrated in southern India. It is promoted by Mathew Kosamattom Cherian and Laila Mathew and has diversified operations including money changing and depository participant services. The company has launched a public issue of secured, redeemable, non-convertible debentures (NCDs) aggregating up to ₹30,000 lakhs.;
Pros and Cons
Pros
Cons
The company has been operating since 1987, reflecting a long track record in the financial services and gold loan industry.
The company holds a certificate of registration from the Reserve Bank of India to operate as a non-banking financial company, strengthening its regulatory credibility.
The proposed NCD issue has been rated “IND A/Stable” by India Ratings & Research, indicating an adequate degree of safety and low credit risk regarding timely servicing of obligations.
The NCDs are secured against movable assets, receivables, loans, advances, cash and bank balances of the company, providing additional comfort to investors.
The company derives a significant portion of its revenue from southern India and has an established branch network in the region, supporting its lending operations.
Other details
Nature of instrumentSecured redeemable non-convertible debentures
Yield--
Placement typePublic issue
Coupon type--
SenioritySenior
Name of debenture trusteeVISTRA ITCL (INDIA) LIMITED