Bonds IPO: Smart, Secure, and High-Yield Investment Opportunities in 2025

What is a Bonds IPO?

A Bonds IPO, or Initial Public Offering for bonds, is when a company offers its non-convertible debentures (NCDs) to the public to raise debt capital. Unlike equity IPOs, where you buy shares and own a piece of the company, bond investors lend money to the company for a fixed tenure in return for regular interest payouts and principal repayment at maturity.

Simply put, you’re not buying ownership—you’re lending your money and earning fixed interest, making it one of the most stable income-generating investments available in the market.

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Upcoming Bonds IPOs in July 2025

As of July 16, 2025, here are the open Bonds IPOs on Groww:

Issuer	Interest Rate	Closes On	Credit Rating
Kosamattam Finance Ltd	Up to 10.41%	18 July	A-
Edelweiss Financial Services Ltd	Up to 10.50%	21 July	A+
KLM Axiva Finvest Ltd	Up to 11.10%	22 July	BBB
Sammaan Capital Ltd	Up to 9.95%	28 July	AA
Muthoot Mercantile Ltd	Up to 11.73%	29 July	BBB

Each offering has its own risk-return trade-off, and it’s essential to evaluate credit rating, tenure, and interest rate before investing.

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Interest Rates and Ratings Comparison

While Muthoot Mercantile offers the highest interest at 11.73%, it has a BBB rating, signaling higher risk. On the other hand, Sammaan Capital offers the lowest return (9.95%) but comes with a strong AA rating, indicating higher creditworthiness.

💡 Tip: Lower-rated bonds usually offer higher returns to compensate for the increased risk. Always balance return expectations with credit safety.

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Benefits of Investing in Bonds IPOs

Bond IPOs offer several benefits, especially for conservative investors:

• Fixed Income: Interest is paid regularly and is predictable.
• Low Market Volatility: Bonds aren’t affected by daily stock market fluctuations.
• Safety of Principal: Unless the issuer defaults, your investment is safe.
• Early Exit Option: You can sell the bonds on the secondary market before maturity, though liquidity may vary.

All these features make Bond IPOs a safe haven during economic uncertainty.

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How and Where to Receive Payments

Investors receive:

• Interest payments directly into their demat-linked bank account, as per the bond’s schedule.
• Principal amount is credited back on the maturity date of the bond—also to the demat-linked bank account.

Thus, both payout components are entirely digital and hassle-free.

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Selling Bonds Before Maturity

Yes, you can sell your bonds before maturity, much like shares, in the secondary market. But:

• There may be no immediate buyers, depending on demand.
• The price may vary based on interest rate fluctuations and market sentiment.

Hence, while flexible, selling early may come with minor execution risks.

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Taxation on Bonds IPO

Bond returns are taxed differently based on how long you hold them:

• Interest Income: Taxed as per your income slab. Plus, 10% TDS is deducted upfront.
• Capital Gains:
  • STCG (redeemed before 12 months): Taxed at slab rate.
  • LTCG (held >12 months): Taxed at 12.5% without indexation.
  • Unlisted Bonds: Taxed similarly based on tenure.

Clearly, understanding the tax implications is crucial to maximize post-tax returns.

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Application Process & Flexibility

• You can cancel your application before the IPO closes. If done before mandate approval, funds are released quickly.
• Multiple applications for the same Bond IPO are allowed.
• Post-application, funds are blocked only after mandate approval, adding a layer of convenience.

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FAQs and Clarifications

• What are Bonds? Fixed-income investments with assured payouts and capital return.
• Where do I receive payments? In your demat-linked bank account.
• Can I sell bonds before maturity? Yes, via the secondary market, subject to liquidity.
• Are they safe? That depends on the issuer’s credit rating, always visible before you apply.

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Bonds IPOs are ideal for:

• Retirees and conservative investors looking for stable, recurring income.
• Young professionals diversifying beyond volatile equity investments.
• Portfolio builders seeking balance between risk and reward.

The Bonds IPO platform on Groww brings this to your fingertips, allowing seamless access, real-time tracking, and flexible exits. As with all investments, assess your goals, understand the risks, and proceed wisely.

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**Disclaimer: However, always review your risk appetite and portfolio mix before committing.**

**Disclaimer: The Image in the article is taken from google is used for article which is generated by Chatgpt content. always review your risk appetite and portfolio mix before committing. We are not Finanacial advisors this content is our own analysis and any loss or gains are not subjected to our mention opinon. Invest at your own risk**

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