Kosamattam Finance NCD May 2026 issue has opened for subscription offering interest rates up to 10% per annum. In the current market where bank FD rates are moderating, many investors are exploring secured NCDs for better fixed income returns. Kosamattam Finance is a well-known gold loan NBFC operating primarily in South India and has been a frequent issuer in the debt market.
The company is coming up with secured NCDs aggregating up to ₹300 Crores and the issue would be listed on BSE. Should investors invest in Kosamattam Finance NCD May 2026 issue? Let us review the issue details, interest rates, credit ratings, financials, risks and positives in this detailed review.
About Kosamattam Finance Limited
Kosamattam Finance Limited is a non-deposit taking NBFC primarily engaged in gold loan business. The company lends money against household gold jewellery and has operations spread across Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Maharashtra, Uttar Pradesh, Telangana, Puducherry and Delhi.
As of September 2025, the company had 11.61 lakh gold loan accounts with loan assets exceeding ₹6,137 Crores. More than 99% of its loan portfolio consists of gold loans, indicating a focused business model.
The company has a wide branch network of 981 branches across India with nearly 4,000 employees. It mainly caters to salaried employees, traders, farmers, small business owners and families requiring short-term financing.
Kosamattam Finance has been operating for over 37 years and has regularly tapped debt markets through NCD issuances. The promoters of the company are Mathew K. Cherian and Laila Mathew.
Kosamattam Finance NCD May 2026 – Issue Details
| Particulars | Details |
|---|---|
| Issue Opening Date | May 18, 2026 |
| Issue Closing Date | June 1, 2026 |
| Issue Size | ₹300 Crores |
| Base Issue Size | ₹150 Crores |
| Face Value | ₹1,000 per NCD |
| Minimum Investment | ₹10,000 |
| Listing | BSE |
| Security Type | Secured Redeemable NCDs |
| Market Lot | 1 NCD |
| Allotment Basis | First Come First Served |
| Lead Manager | Vivro Financial Services Pvt Ltd |
| Registrar | Kfin Technologies Ltd |
| Debenture Trustee | Vistra ITCL India Ltd |
Kosamattam Finance NCD Interest Rates May 2026
| Series | Tenure | Interest Payment | Coupon Rate | Effective Yield |
|---|---|---|---|---|
| Series I | 24 Months | Cumulative | NA | 8.26% |
| Series II | 24 Months | Monthly | 8.50% | 8.84% |
| Series III | 36 Months | Monthly | 9.25% | 9.65% |
| Series IV | 36 Months | Cumulative | NA | 9.25% |
| Series V | 42 Months | Monthly | 10.00% | 10.47% |
| Series VI | 50 Months | Cumulative | NA | 10.22% |
| Series VII | 60 Months | Monthly | 10.00% | 10.47% |
| Series VIII | 84 Months | Cumulative | NA | 10.41% |
The highest effective yield offered under this issue is 10.47% per annum under Series V and Series VII.
Credit Ratings
The NCD issue has been rated IND A / Stable by India Ratings & Research Private Limited.
An IND A rating indicates adequate degree of safety regarding timely servicing of financial obligations and carries low credit risk. However, investors should understand that IND A rating is considered moderate investment grade and not the highest safety category like AAA.
Credit Rating Trend in the Last Few Years
| Year | Rating Agency | Rating | Remarks |
|---|---|---|---|
| 2020 | Brickwork Ratings | BWR BBB+ / Stable | Assigned for NCD Issue XX |
| 2021 | Brickwork Ratings | BWR BBB+ / Stable | Assigned for NCD Issue XXII |
| 2021 | Brickwork Ratings | BWR BBB+ / Stable | Assigned for NCD Issue XXIII |
| 2022 | Brickwork Ratings | BWR BBB+ / Positive | Assigned for NCD Issue XXIV |
| 2022 | India Ratings & Research | IND A- / Stable | Upgraded from BBB+ category |
| 2023 | India Ratings & Research | IND A- / Stable | Continued stable rating |
| 2024 | India Ratings & Research | IND A- / Stable | Rating reaffirmed |
| Dec 2024 | India Ratings & Research | IND A / Stable | Further upgraded from A- to A |
| 2025 | India Ratings & Research | IND A / Stable | Rating reaffirmed multiple times |
| 2026 | India Ratings & Research | IND A / Stable | Current rating for May 2026 NCD issue |
However, investors should note that gold loan NBFCs are exposed to regulatory risks, gold price fluctuations and competitive pressures.
Objects of the Issue
The company proposes to utilize the issue proceeds for the following purposes:
- Onward lending activities
- Repayment of interest and principal of existing borrowings
- General corporate purposes
The majority of funds are expected to support the company’s core gold loan lending business.
Kosamattam Finance Financial Performance
| Particulars (₹ Crores) | FY25 | FY24 | FY23 |
|---|---|---|---|
| Total Assets | 6,405.69 | 5,985.78 | 5,444.34 |
| Total Income | 900.43 | 858.94 | 782.54 |
| Profit After Tax | 127.06 | 113.70 | 107.05 |
| Net Worth | 1,062.84 | 927.57 | 763.99 |
The company has shown steady growth in assets, income and profits over the last three financial years.
Its net worth has also improved consistently, indicating gradual strengthening of the balance sheet.
For the six months ended September 2025, the company reported total income of ₹505.15 Crores and PAT of ₹80.60 Crores.
Why to Invest in Kosamattam Finance NCD May 2026?
- Attractive interest rates up to 10.47% effective yield
- Secured NCDs providing relatively better safety compared to unsecured instruments
- Long operating history of more than 37 years
- Strong presence in gold loan business
- Consistent financial growth in recent years
- Monthly income options available for regular cash flow
- NCDs proposed to be listed on BSE
Why Not to Invest in Kosamattam Finance NCD?
- IND A rating is moderate and not highest safety category
- Company business is heavily concentrated in gold loans
- Gold loan business faces intense competition from large NBFCs like Muthoot Finance and Manappuram Finance
- NBFC sector is exposed to RBI regulatory changes
- Liquidity in NCD secondary market can sometimes be limited
- Long tenure options may carry reinvestment and interest rate risks
- Read complete risk factors at Kosamattam Finance NCD May-26 prospectus.
How to Apply for Kosamattam Finance NCD?
Investors can apply for this NCD issue through the following methods:
- Through stock brokers using online trading accounts
- Through ASBA supported bank accounts
- Through platforms like GoldenPi and Indiabonds
- Through BSE Direct or NSE goBID platforms
Retail investors can apply online using UPI for investments up to ₹5 Lakhs.
Minimum investment amount is ₹10,000.
Since the allotment is on First Come First Served basis, investors planning to invest should apply early.
Should You Invest in Kosamattam Finance NCD May 2026?
Kosamattam Finance NCD May 2026 offers attractive interest rates up to 10.47% effective yield, which is significantly higher than traditional bank fixed deposits.
The company has a long operational track record, stable financial growth and a strong presence in gold loan financing. The secured nature of the NCDs also provides additional comfort to investors.
However, the issue carries moderate credit risk considering the IND A rating. Investors should also note the concentration risk as the company’s business is heavily dependent on gold loans.
Moderate risk investors looking for higher fixed income returns can consider investing a limited portion of their debt portfolio in these NCDs.
Conservative investors seeking highest safety may prefer AAA rated bonds or bank fixed deposits instead.
FAQs
What is the interest rate offered in Kosamattam Finance NCD May 2026?
The issue offers effective yields ranging from 8.26% to 10.47% per annum.
What is the minimum investment amount?
Minimum investment amount is ₹10,000.
Are these NCDs secured?
Yes, these are secured redeemable non-convertible debentures.
What is the credit rating of this NCD issue?
The issue is rated IND A / Stable by India Ratings & Research.
Can investors sell these NCDs before maturity?
Yes, these NCDs would be listed on BSE and can be sold in the secondary market.
Is monthly interest payout available?
Yes, select series offer monthly interest payout options.
Who can invest in these NCDs?
Retail investors, HNIs, institutions and non-institutional investors can invest in this issue.
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