What exactly is Bond IPO

QnA
1

I recently came across the term Bond IPO in a financial article.
How is it different from regular bond offerings or NCD issues?

2

Hi Parth.
Great question, a lot of investors are curious about this term.

A Bond IPO (Initial Public Offering) is quite similar in concept to an equity IPO, but instead of shares, the issuer is offering bonds or debentures directly to investors for the first time.

Here’s how it works:

  • The company files a public issue with SEBI.

  • Bonds are offered to investors through stock exchanges (like NSE/BSE) via ASBA.

  • Investors can apply use their broker platform, just like a share IPO.

  • Once the issue closes and allotment is done, bonds are credited to your demat account.

So in short, a Bond IPO = public issue of bonds, open to all retail investors at launch.