Frequently Asked Questions

faq-img
searchclose

Collection Details

What is an NCD IPO and how does it differ from a regular IPO?


A Non-Convertible Debenture (NCD) Initial Public Offering (IPO) is a type of debt security that companies can issue to raise funds from the public. In contrast to regular IPOs that offer equity shares to investors, NCD IPOs offer fixed income securities.

NCDs are typically rated by credit rating agencies based on the issuer's creditworthiness and offer a fixed interest rate to investors. They have a specified maturity period and are tradable in the secondary market.Compared to regular IPOs, NCD IPOs offer lower risk and more predictable returns. They can be a good option for investors looking for fixed income investments and are suitable for those with a low to medium risk appetite.