Convertible debentures

The company chose Optionally Convertible Debentures (OCDs) over a traditional loan to navigate strict legal interest rate floors under Section 186, optimize corporate tax, keep the subsidiary’s balance sheet bankable (quasi-equity status), and preserve the option to convert the debt into high-value equity shares if the subsidiary grows, thereby protecting and maximizing value for the listed company's retail shareholders.

The wholly owned subsidiary watch incorporated in the year 2024.  the subsidiary has not started commercial production. Promoter holding in the company I invested is 63%. Promoter divested 25% in the subsidiary to another Promoter owned LLP. But later that year promoter bought back those 25% in the original company. 

My enquiry is that currently the subsidiary is wholly owned. So even if debentures are converted to equity does it really in interest of retail investor.

Present the company is WOS. At anytime the company may convert the convertible debentures into equity shares and it stop being a WOS.I think the Case law is Salomon vs Salomon.And the company may come for public issue and converting the WOS into a normal company public limited or company coming for public issue. 

Please correct me if I misunderstood.

It is like lifting the veil of Holding Company, the WOS stop being so.