What are convertible debentures meaning?
Welcome to the article on convertible debentures in this article we will learn what are convertible debentures and how does it help the organization issuing the debentures as well as the investors who are investing in them. Convertible debentures meaning :- Convertible debentures are one of the ways to attract investors and ensure the success of its debt issue let us understand how so the first question is what is convertible debentures? so a convertible debenture is a type of debenture that can be changed into a specified number of ordinary shares at the discretion of the owner of the debenture. So let us take a quick example to understand the concept of convertible debentures so let's say that a company issues in LAC 12% convertible debentures and these debentures are of rupees 100 each and each of these debentures is convertible into two equity shares of rupees 50 each after two years from the date of allotment so basically at the time of issue of these convertible debentures