Corpzo: Compulsory Convertible Debentures

Raising funds through equity would dilute the stake in the company, whereas the debt will carry a huge rate of interest. Thus, the other alternative is the issuance of Compulsory Convertible debentures [‘CCDs’], which can be converted into equity at a specified time or on the happening of specified events, into equity. CCDs, as the name suggests, are a “debt” instrument which are to be compulsorily converted into equity after a certain period.