Lotus Petal Foundation Launches ₹1 Crore ZCZP Bond Issue on BSE Social Stock Exchange

Lotus Petal Foundation, a Gurugram-based non-profit, has opened its first Zero Coupon Zero Principal (ZCZP) bond issue on the BSE Social Stock Exchange (SSE) since the government allowed eligible subscriptions to count towards corporate social responsibility (CSR) obligations, marking a significant milestone in the social stock exchange’s growth.

Lotus Petal Foundation Launches ₹1 Crore ZCZP Bond Issue on SSE

The issue, which closes on July 31, has already garnered subscriptions for about 12 per cent of the issue size on the opening day, with GTPL Hathway Ltd., a long-standing CSR partner of the foundation, committing to subscribe to up to 15 per cent of the issue through its CSR allocation.

GTPL Hathway Ltd. has been a valued CSR partner of Lotus Petal Foundation for the past seven years and has committed to subscribe to up to 15 percent of the issue through its CSR allocation, as stated by Kushal Raj Chakravorty, Founder and Managing Trustee of Lotus Petal Foundation.

GTPL Hathway Ltd.’s Commitment Reflects Growing Confidence in SSE

We believe this reflects growing confidence among corporates in the Social Stock Exchange as a transparent and credible avenue for creating measurable social impact, said Chakravorty.

Market Impact and Details

The issue comes soon after the Centre permitted companies to deploy up to 10 per cent of their annual CSR expenditure through subscriptions to eligible ZCZP instruments listed on social stock exchanges, creating a new fundraising avenue for registered non-profit organisations.
The proceeds from the bond issue will fund one year of education for 160 students studying in classes 3 and 5 at Lotus Petal Senior Secondary School in Dhunela, Gurugram.
The funding will cover tuition, books, uniforms, stationery, transport, digital learning, and breakfast and lunch.

Key Takeaways

Lotus Petal Foundation aims to raise ₹1 crore through the issue, with a minimum investment of ₹1,000.
The foundation has mobilised an estimated ₹180-200 crore through corporate CSR funding, individual donations and overseas contributions over the past 15 years.
The foundation plans to expand its school campus and significantly scale up its digital learning platform over the coming years.

FAQs

What is a Zero Coupon Zero Principal (ZCZP) bond issue?

A ZCZP bond issue is a type of bond that does not pay interest or return principal, instead, investors make philanthropic contributions towards specified social projects while issuers are required to disclose audited fund utilisation and impact reports under the Social Stock Exchange framework.

How will the proceeds from the bond issue be utilised?

The proceeds from the bond issue will fund one year of education for 160 students studying in classes 3 and 5 at Lotus Petal Senior Secondary School in Dhunela, Gurugram, covering tuition, books, uniforms, stationery, transport, digital learning, and breakfast and lunch.

What is the significance of this bond issue for the Social Stock Exchange?

This bond issue marks a significant milestone in the growth of the Social Stock Exchange, as it is the first such issue since the government allowed eligible subscriptions to count towards corporate social responsibility (CSR) obligations.

Conclusion

Lotus Petal Foundation’s ₹1 crore ZCZP bond issue on the BSE Social Stock Exchange (SSE) is a significant development in the growth of the social stock exchange, marking a new fundraising avenue for registered non-profit organisations. As the foundation continues to expand its school campus and digital learning platform, it is essential to support such initiatives through philanthropic contributions. We encourage investors to consider subscribing to this bond issue and contribute to creating measurable social impact.