Q.11. Mahindra and Mahindra was the first company in India to issue convertible debentures in January 1990. Recently many other companies have got approval to issue debentures for raising long-term debt capital. Give three reasons why it is becoming popular.
Dear student,
In this question you have to explain the benefits or advantages of debentures. For instance, the following are some advantages of debentures:
1. Provides fixed income at lesser risk
2. More suitable when earning is stable
3. Debentures do not dilute the control of equity shareholders
In this question you have to explain the benefits or advantages of debentures. For instance, the following are some advantages of debentures:
1. Provides fixed income at lesser risk
2. More suitable when earning is stable
3. Debentures do not dilute the control of equity shareholders