An NCD is a fixed-income NCD is a fixed-income instrument used by highly rated companies to raise funds from the public for a fixed tenure. It involves an interest rate and the return of the principal invested on the NCD’s maturity. It is called non-convertible as NCDs cannot be converted to equity. In comparison to convertible debentures, NCDs offer benefits like higher returns, liquidity, and low risk. An NCD IPO is the process of raising funds through this instrument for the first time in the primary market. A major difference between an equity IPO and NCD IPO is that allotment in NCD IPO is on a first come first serve basis.
