Kosamattam Finance NCD February 2026 offers investors 8–10.47% effective yields through secured NCDs with tenures from 15 months to 84 months, backed by the company's gold loan business and rated IND A/Stable.

Kosamattam Finance NCD – Issue Overview

Kosamattam Finance Ltd, a gold loan NBFC, launched its secured, redeemable NCD public issue on February 9, 2026, open until February 23, 2026.

• Issue size: Base ₹100 Cr + oversubscription up to ₹100 Cr = total ₹200 Cr.
• Face value: ₹1,000 per NCD.
• Minimum investment: 10 NCDs = ₹10,000.
• Listing: BSE (post allotment).
• Rating: IND A/Stable by India Ratings (adequate safety, low credit risk).
• Lead manager: Vivro Financial Services; Registrar: Kfin Technologies.

The issue was subscribed 2.41x as of Feb 10, with strong NII (5.19x) and QIB (3x) interest.

NCD Series & Yields Comparison

Key choices: Monthly payouts (Series 2,3,5,7) suit regular income needs; cumulative options (1,4,6,8) for compounding. Highest yield: Series 7 at 10.47% (60 months monthly).

Company Profile & Financials

Kosamattam Finance Ltd – Non-deposit NBFC focused on gold loans (>99% of portfolio), operating 981 branches across 9 states (Kerala, TN, KA, AP, MH, UP, TS, Puducherry, Delhi).

• Portfolio: 11.61 lakh gold loan accounts worth ₹6,137 Cr (Sep 30, 2025); avg loan ~₹53–58k.
• Growth: Assets ₹6,406 Cr (FY25, +7% YoY); PAT ₹127 Cr (+12% YoY).
• Recent H1 FY26: Income ₹505 Cr, PAT ₹81 Cr.
• Other services: Microfinance, money transfer, FX, power generation, agri activities.
• Promoters: Mathew K. Cherian, Laila Mathew.

Use of proceeds: Lending (gold loans), onward lending, debt repayment.

Strengths

• Attractive yields: 8–10.47% beats most bank FDs/bonds for similar ratings.
• Secured nature: Backed by company's assets; IND A/Stable rating signals low credit risk.
• Gold loan collateral: Stable, asset-backed lending model resilient to economic cycles.
• Proven track record: 36th NCD since 2014; consistent growth in AUM/PAT.
• Flexible options: Mix of monthly/cumulative, short (15M) to long (84M) tenures suit varied needs.
• Retail accessibility: Min ₹10k, online application via NSEgoBID/BSEDirect/apps.

Risks

• NBFC sector risks: Sensitive to gold price volatility, regulatory changes (RBI gold loan norms).
• Interest rate risk: Fixed yields; rising rates could make new issues more attractive.
• Liquidity risk: Secondary market trading possible but volumes may be thin; early exit via sale at potential discount.
• Credit concentration: >99% gold loans; any spike in NPAs or auction losses impacts.
• No early redemption: No call option; locked till maturity unless sold in market.
• Market/credit rating changes: Downgrade or weak subscription could affect resale value.

FAQs

1. When does Kosamattam NCD issue open/close?
Opens: Feb 9, 2026 | Closes: Feb 23, 2026.

2. Minimum investment amount?
₹10,000 (10 NCDs x ₹1,000).

3. What are the highest yields?
10.47% (Series 7, 60M monthly); 10.41% (Series 8, 84M cumulative).

4. How to apply online?
Via NSEgoBID/BSEDirect, GoldenPi, Indiabonds, or brokers like Angel One/SBI Securities (UPI/ASBA).

5. Is it safe? Rating details?
IND A/Stable – adequate safety, low credit risk; secured by company assets.

6. Can I exit early?
Listed on BSE; sell in secondary market, but no guaranteed liquidity/price.

7. Who should invest?
Income-focused investors seeking 8–10.5% fixed returns with moderate risk tolerance.