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In this video, we learn about convertible debentures, a financial instrument that benefits both organizations and investors. Convertible debentures allow holders to convert them into a specified number of ordinary shares at their discretion. For example, if a company issues ₹1,00,000 of 12% convertible debentures priced at ₹100 each, each debenture can be converted into two ₹50 equity shares after two years. This mechanism not only attracts investors but also secures cash inflow for the company at the time of issuance. The video details these concepts, emphasizing the advantages of convertible debentures in successful debt issuance.