Corporate Bonds IPOs

What types of bonds can I invest in on Groww?

• Bond IPOs - Newly issued bonds in primary market
• Listed Bonds - Bonds already trading in the market

How do I invest in bonds on Groww?

Select the bond you want, review details like returns and maturity, enter investment qty, and complete the payment.

What is the minimum amount required to invest?

The minimum investment amount depends on the bond. You can check this on the bond details page.

Is my money safe in bonds?

Bonds are generally less risky than stocks, but they are not risk-free. There is a possibility that the company may delay or fail to repay.

What does a bond’s credit rating mean?

A credit rating shows the company’s ability to repay its debt. Higher ratings usually indicate lower risk.

What is the difference between interest rate and YTM?

• Interest rate (Coupon rate) is the fixed percentage the company pays on the bond’s face value. This does not change.
• YTM (Yield to Maturity) shows the total expected yearly return if you hold the bond till maturity. It considers:
  • The price you paid
  • The interest you receive
  • The amount you get at maturity

If you buy the bond at a lower price than its face value, YTM will be higher than the interest rate. If you buy it at a higher price, YTM will be lower.

Will my returns change after I invest?

If you hold the bond till maturity, your interest payments remain fixed. If you sell before maturity, your final return may change based on the market price.

How and when will I receive interest?

Interest is paid at regular intervals (monthly, quarterly, yearly) or may be cumulative, as mentioned on the bond page. It is automatically credited to your demat linked primary bank account.

Do I need to claim my interest manually?

No. Interest payouts are credited automatically. You do not need to take any action.

What happens if the interest payment date is a holiday?

If the payment date falls on a holiday, the amount is usually credited on the next bank working day.

When will I get my principal amount back?

If you hold the bond till maturity, the full principal amount is repaid on the maturity date.

Where will the maturity amount be credited?

The principal amount is automatically credited to your demat linked primary bank account.

Can I sell bonds before maturity?

Yes, you can sell bonds before maturity. It depends on market liquidity.

Is selling a bond guaranteed?

Selling depends on buyer availability in the market. It may not happen instantly or at your desired price.

Why does the price of listed bonds change?

Bond prices change based on market demand, changes in interest rates, and the company’s financial performance.

What happens if the company does not repay?

If the company faces financial difficulties, interest or principal payments may be delayed or defaulted. Credit ratings help assess this risk.

How are bond returns taxed?

Interest earned from bonds is taxed as per your income tax slab.

Is TDS deducted on bond interest?

TDS is deducted automatically during payout.

What happens if my Bond IPO application is not allotted?

If you do not receive allotment, the blocked or debited amount is automatically refunded within 3–5 working days.