I have invested in a NSE listed company. That company has invested in optionally convertible debentures of its wholly owned subsidiary about 170 crores.

Previously the listed company in which I invested incorporated its wholly owned subsidiary in 2024. Sold 25% of its stake in wholly owned subsidiary at fair market value to another promoter owned LLP. But due to retail investor questioning the promoter at AGM , the Company bought back the 25% stake which was previously sold.

Now my question is that the company can give loans to its subsidiary. But why instead of loan route it invested in optionally convertible debentures of the wholly owned subsidiary?