Investing In Bonds: What You Need To Know About Bond IPOs

Grip Invest
Grip Invest
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Apr 08, 2024
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    Investing hard-earned money can be tricky. However, it is an essential process to maximise your wealth. Investments are often made after much deliberation and comparisons, as multiple avenues are available in the market today. 

    Investing in bonds, including bond IPOs, has emerged as a preferred investment avenue for low-risk, high-yielding opportunities. India’s bond market plays a vital role in the economy's structure.

    According to the CRISIL Report, the corporate bond market registered a CAGR of ~9% in the last five years. Now anticipating even more robust growth, CRISIL expects the outstanding size of the market to more than double by 2030, crossing the INR 100-120 lakh crore mark in the next seven years.

    However, before investing, you must understand a bond IPO in depth. Read the article below to learn about bond IPOs.

    What Are Bond Public Issues?

    Similar to how companies do IPOs for their shares, an initial public offering (IPO) of bonds is referred to as a bond IPO, and future bond issues are known as "public issues of bonds." A firm that requires funds can choose to issue bonds to the public and apply for a bond public issue. 

    Bond IPO, also known as bond offering, is the process of raising debt capital from the general public through bonds instead of equity in the company. Bond investments give bondholders a periodic, fixed interest rate for a particular maturity. At maturity, the company pays back the initially invested amount.

    What Are The Benefits Of Bond Public Issues?

    Bond IPOs are a favourable option for investing due to the following reasons: 

    1. Fixed Returns On Investment

    Investing in a bond IPO can be a go-to method for investors looking for predictability and stability. The coupon rate is fixed for the entire bond term, allowing investors to receive predictable fixed income (monthly, quarterly, or half-yearly) and maintain a steady cash flow. 

    2. Low Ticket Size

    The minimum amount of investment in a bond public issue is INR 1,000. This low entry point allows investors from different financial levels to invest in bonds. It also allows new investors to test the waters without significant risks.

    3. Strictly Regulated

    The Securities Exchange Board of India (SEBI) regulates the Indian securities market. It has established strict guidelines and regulations for the public issue of bonds to ensure transparency, boost trust, and protect investors' interests. 

    4. Exchange-Listed

    Bond IPOs are exchange-listed (NSE/BSE) and are credited to the investor’s Demat account. This allows the investors to track their holdings and liquidate if needed. 

    5. Diversification Of Portfolio

    Bond IPOs are instrumental in diversifying an investor’s portfolio. Incorporating them into an investment strategy can balance out the risks and returns of a portfolio due to their non-market-linked nature. 

    6. Low Risk

    Bonds are considered a low-risk investment option than stocks or mutual funds due to lower volatility. Furthermore, bonds are credit-rated based on the issuer’s creditworthiness. Investment-grade bonds provide low-risk investment avenues. 

    How Can You Apply For Bond Public Issue?

    You can apply for a bond public issue by following these steps:

    Step 1: Visit A Bond Offering Platform And Verify

    Go to a trusted bond offering platform, check the available public issues, and compare them. Before investing, you must check the authenticity of the websites and bonds. 

    Step 2: Read The Important Information

    Choose the bond public issue of your choice. Before investing, review relevant documents and obtain detailed information on the issue and the issuer. Address all your concerns and queries beforehand and select relevant investor types and categories.

    Step 3: Select Your Investment Size

    Select the series, bond issue size, and the amount you want to invest. The minimum amount for investing in a public bond issue is INR 1,000.

    Step 4: Enter Your Details

    Add your personal details carefully. Preview your submission, confirm, and submit your form. Then, download the acknowledgement slip.

    Step 5: Make payments

    You can make payments online via UPI for transactions up to INR 5 Lakhs and through ASBA for more than INR 5 Lakhs transactions.

    After allotment, the bonds will be added to your demat account. Bond public issuances are on a first-come, first-served basis, so you must apply as early as possible.

    Investing In Bonds Through Secondary Markets

    If you miss purchasing bond IPOs, you can invest in bonds through reliable and transparent secondary markets. Grip Invest, a SEBI-regulated online bond-providing platform (OBPP), curates many exchange-listed, investment-grade corporate bonds starting from INR 1,000. The platform offers comprehensive details on different bonds and their issuers, helping investors with due diligence.


    Investing in bond IPOs is a sound step towards low-risk, high-yield investing. It offers benefits such as stability, diversification, and predictable returns. Bond investments are easy to start, track, and manage. However, you must thoroughly check the issuer’s background before investing in a bond IPO. 

    Explore stable corporate bond investment strategies on Grip Invest to achieve your financial goals. The platform offers curated, rated, SEBI-compliant, and listed opportunities.

    Frequently Asked Questions On Bond IPOs

    1. Which is better, stock or bond?

    Typically, stocks offer higher returns than bonds but are volatile in nature. Unlike stocks, bonds offer predictable returns. Thus, the choice between stocks and bonds varies for different investors. Bonds are suitable for low-risk investors seeking predictable and periodical fixed incomes.

    2. Are bonds safer than stocks?

    Bonds are safer than stocks due to their low volatility and predictable returns. 

    Want to stay at the top of your finances? 

    Join the community of 2.5 lakh+ investors and learn more about Grip Invest, the latest financial knick-knacks, and shenanigans in the world of investing.

    Happy Investing!

    Disclaimer - Investments in debt securities/municipal debt securities/securitised debt instruments are subject to risks including delay and/ or default in payment. Read all the offer related documents carefully. The investor is requested to take into consideration all the risk factors before the commencement of trading.
    This communication is prepared by Grip Broking Private Limited (bearing SEBI Registration No. INZ000312836 and NSE ID 90319) and/or its affiliate/ group company(ies) (together referred to as “Grip”) and the contents of this disclaimer are applicable to this document and any and all written or oral communication(s) made by Grip or its directors, employees, associates, representatives and agents. This communication does not constitute advice relating to investing or otherwise dealing in securities and is not an offer or solicitation for the purchase or sale of any securities. Grip does not guarantee or assure any return on investments and accepts no liability for consequences of any actions taken based on the information provided. For more details, please visit

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