Face value is the amount the issuer promises to repay for each bond at maturity, and the amount the coupon is calculated on. Publicly issued NCDs in India usually have a face value of ₹1,000.
Privately placed bonds used to have face values of ₹10 lakh, which kept individual investors out. SEBI has lowered the minimum face value for privately placed debt in steps since 2022, so many can now be bought in much smaller units, including through online bond platforms.
Some NCDs repay principal in instalments before maturity; then the face value outstanding falls over time, and the coupon is paid on the reduced amount. Bond prices are usually quoted per ₹100 of face value.
Related
Related terms: Coupon rate · Clean price and dirty price · Private placement of bonds
Before investing, look up the issuer: all its outstanding bonds, rating history and disclosure documents.
This page is for information only. It is not investment advice, a credit rating or a recommendation to buy, sell or hold any security. Facts are taken from the issuer's own documents and the sources linked on this page; check them with the source before investing.
