How to Invest in a Bond IPO in India?

A Bond IPO (also known as a public issue of bonds) is your chance to invest directly in government or corporate bonds at the original offer price—regulated by SEBI and available through digital platforms like Bondbazaar.

Investing in bonds through a public issue is one of the easiest ways to earn steady income. A bond IPO—also known as an IPO public issue—is when a company or the government offers bonds directly to the public for the first time. This gives investors the opportunity to buy bonds at the original offer price, before they are available in the secondary market.

A bond issue like this can be a smart way to lock in fixed returns over time. If you're new to fixed-income investments or simply want to diversify with safer options, understanding how an IPO public issue works is a great place to start. This guide breaks it down in a simple, step-by-step way.

What is a Bond?

A bond is a fixed-income financial instrument that represents a loan made by an investor to a borrower, typically a corporation or government. The issuer promises to pay interest at regular intervals and return the principal amount on a specified maturity date.

Think of it as a long-term agreement—you lend your money, and in exchange, you get steady returns over time. It’s a popular choice for those who want predictable earnings without the ups and downs of the stock market.

Let’s say you buy a bond worth ₹10,000 with 10% interest for 5 years.

• Every year, you’ll get ₹1,000 as interest.
• After 5 years, you’ll get your ₹10,000 back.

That’s how bonds give you fixed and regular income.

What is a Bond IPO?

A bond IPO is when a company or government offers its bonds to the public for the first time. Here’s the public issue meaning: It simply means anyone from the public can apply and buy the bonds during a set period.

This is not the same as a share IPO, where you become a part-owner of the company. In a bond IPO, you become a lender to the company or government, and they agree to pay you interest regularly until maturity.

Benefits of Investing in a Bond IPO

Here’s why many smart investors invest in a bond issue through a public offering:

1. Start with as low as ₹10,000 – You don’t need to start with lakhs.

2. Higher returns than FDs – Companies often offer more interest to individual investors than to big institutions.

3. Regulated by SEBI – The bond process is safe and follows all government rules.

4. Transparent pricing – Everyone pays the same price. There’s no bidding like in share IPOs.

5. Listed on NSE/BSE – You can track performance and sell bonds later if needed.

6. Easy to exit – Most public issues have better liquidity (easier to sell) than other bonds.

How to Apply for a Bond IPO on Bondbazaar?

At Bondbazaar, we’ve made investing in a bond IPO (also called a public issue) smooth, transparent, and fully digital. Here’s how you can apply online:

Step 1:
Log in to your Bondbazaar account and head over to the Public Issue section.

Step 2:
Browse the ongoing bond IPOs. For each public issue, we provide all the key details—including interest rates, maturity period, and issuer profile—along with downloadable offer documents for deeper insights.

Step 3:
Select your investor type (such as Individual or HUF) and your category (Retail or HNI).

Step 4:
Choose the bond series that fits your investment goals. Some bonds offer interest payouts monthly, while others do so annually. Enter your investment amount (starting from just ₹10,000).

Step 5:
Fill in a few basic details—PAN, demat account, bank information, and address.

Step 6:
Preview your application to ensure everything looks right, then hit submit.

Step 7:
Make your payment through:

• UPI (for investments up to ₹5 lakh
• ASBA (Application Supported by Blocked Amount—for ₹5 lakh and above)

Once the application is successful and allotment is confirmed, the bonds will be credited directly to your demat account. From there, you’ll start receiving interest as per the schedule mentioned in the bond issue.

Documents Required for Bond IPO in India

To apply for a bond IPO, you will need:

• PAN card
• Demat account details
• Bank account details
• Address proof

Who Can Issue a Bond IPO?

• Companies: To raise money for projects, expansion, or to repay loans.
• Governments: To fund roads, railways, or other public works. These are called government bonds and are considered very safe.

Missed the IPO? You Can Still Buy!

Even if you miss applying during the IPO window (which usually lasts 3–5 days), you can still buy bonds in the secondary market through Bondbazaar.

We provide you:

• Over 10,000 bonds, including corporate and government bonds.
• A platform to buy or sell bonds anytime.
• Zero charges—no fees for opening or maintaining your account.

Risks to Keep in Mind

While bond IPOs are safer than shares, you should know the risks:

• Interest Rate Risk: If market interest rates go up, your bond’s value may go down.
• Credit Risk: If the company does badly, it may struggle to pay interest.
• Liquidity Risk: Not all bonds are easy to sell. Government bonds and well-rated corporate bonds are usually more liquid.
• Inflation Risk: Fixed income might lose value if inflation is high.

How Are Bond IPOs Different from Share IPOs?

Conclusion

Bond IPOs are a smart and safe way to invest your money for fixed returns. Whether you want to earn a steady income, diversify your portfolio, or simply avoid the ups and downs of the stock market, bond IPOs are a great choice. They are simple to apply for, need minimum investment, and are regulated by SEBI. With Bondbazaar, investing in government bonds or corporate bonds is just a few clicks away. Start today, and build a secure financial future with confidence. After all, slow and steady can truly win the race.