The NCD you are referring to has distributed a principal repayment of 33% on 29th July so the NCD (UGROCAP-N1) is reflecting the same. There is no downgrade or sell off in these bonds. The yield remains at 10% or thereabouts at CMP.
Bond Yield is made up of 2 components - Interest rate and coupon face value
At maturity of the NCD the investor will receive the coupon
face value (given there has been no principal repayment during the tenor, the face value remains same throughout) and some interest according to rate fixed during issuance which is credited monthly/yearly to the holder.
So in this case @Srini_Narayanan thought the NCD CMP was 673 and at maturity he will receive bond face value (1000) and the ~10% interest thereby making the yield ~40% but if he factors in principal repayment the face value drops to 670 and yield will come out to be 10% which is at par with coupon rate at issuance.
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