Article
Compulsorily Convertible Debentures (CCDs) In M&A Due Diligence In India
In Indian M&A transactions, Compulsorily Convertible Debentures (“CCD”) often sit quietly in the
capital structure until they don’t convert. While they may initially appear as debt, their eventual
conversion into equity means they can significantly reshape ownership, control, and valuation.
This dual nature makes CCDs one of the most critical instruments to diligence. In private equity and
venture capital transactions, CCDs are widely used for their flexibility in structuring valuation and
aligning with foreign investment regulations.
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