NCD IPO is a public issue of fixed-interest, non-convertible debentures by companies to raise funds, offering regular returns and tradable on stock exchanges.
An NCD IPO (Non-Convertible Debenture Initial Public Offering) is a public issue of debt instruments by companies to raise funds. Unlike convertible debentures, NCDs cannot be converted into equity shares.
They offer fixed interest returns and are ideal for investors seeking stable income. Issued for a specific tenure, NCDs are listed on stock exchanges, allowing trading before maturity. Companies launch NCD IPOs to attract retail, institutional, and high-net-worth investors.
These offerings are rated by credit agencies to indicate risk. Investors apply during the issue period, and upon allotment, NCDs are credited to their demat accounts. Returns are paid at regular intervals, typically monthly, quarterly, or annually, and principal is repaid on maturity.
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