Why A Nonconvertible Debenture Is The Best IPO For Private Companies

If you're a private company looking to go public, you might be wondering what the best way to do so is. One option that you might not have considered is a nonconvertible debenture (ncd). Here's why an ncd could be the best IPO for your private company.

An ncd is a debt instrument that cannot be converted into equity. That means that if you issue an ncd, you will still maintain 100% ownership of your company. This is unlike a convertible debenture, which can be converted into shares at a later date.

There are several advantages to issuing an ncd instead of selling shares in your company. First, it allows you to raise capital without giving up any ownership stake. Second, it gives you more control over how the funds are used. And third, it can be less dilutive to existing shareholders than an equity sale would be.

So if you're considering going public, an ncd could be the best option for your private company.

A non-convertible debenture (NCD) is a type of debt instrument that cannot be converted into equity shares of the issuing company. NCDs are usually issued for a period of 3 to 5 years and offer higher interest rates than convertible debentures, making them attractive to investors seeking fixed income.

Corporates often use NCDs to raise long-term capital, as they provide a cheaper source of funds than bank loans. NCDs are also less risky for lenders, as there is no possibility of conversion into equity.

The interest payments on NCDs are usually made monthly or quarterly, and the principal amount is repaid at the end of the tenure. In some cases, NCDs may be listed on stock exchanges and traded like other securities.

NCDs are an important source of funding for corporates in India and have helped many companies grow and expand their businesses.

Visit Us For More Information:- blog.bondsindia.com/miscellaneous/non-conve..