Gurugram-based Lotus Petal Foundation has successfully raised ₹55.6 lakh through its maiden Zero Coupon Zero Principal (ZCZP) bond issue on the BSE Social Stock Exchange (SSE), becoming the first issue after the government’s recent amendment allowing eligible investments in Social Stock Exchange instruments to qualify as Corporate Social Responsibility (CSR) expenditure.
The ₹1 crore issue closed on July 31 and secured commitments exceeding the minimum subscription requirement of ₹50 lakh, enabling the issue to be successfully completed.
Corporate CSR Funds Drive Majority of Subscriptions
Corporate participation played a significant role in the fundraising exercise, accounting for more than half of the total amount raised.
GTPL Hathway Ltd subscribed 26% of the issue through its CSR allocation, while Eureka Securities contributed another 2%. Retail investors accounted for approximately 22–25% of total subscriptions, with additional contributions coming through direct participation with the foundation.
Around 38.4% of the issue was subscribed through the BSE Social Stock Exchange platform, with nearly 34% comprising valid bids. The remaining investments were received through the manual bidding process.
First Issue After New CSR Amendment
The fundraising marks the first Social Stock Exchange issue following the Centre’s amendment to CSR Rules, which allows companies to deploy up to 10% of their annual CSR obligation by subscribing to eligible Zero Coupon Zero Principal (ZCZP) instruments listed on recognised Social Stock Exchanges.
Commenting on the development, Kushal Raj Chakravorty, Founder and Managing Trustee of Lotus Petal Foundation, said corporate interest in the new framework was encouraging. However, he noted that companies had limited time to realign their existing CSR commitments following the regulatory change.
He added that it may take at least a year before the full impact of the amended CSR rules becomes visible through stronger corporate participation in Social Stock Exchange offerings.
Funds to Support Education
The proceeds from the bond issue will finance 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 fees, books, uniforms, stationery, transportation, digital learning facilities, as well as breakfast and lunch for the students.
How ZCZP Bonds Work
Unlike conventional bonds, Zero Coupon Zero Principal (ZCZP) instruments do not provide interest payments or return the principal amount to investors.
Instead, they enable donors and institutions to support specific social development projects, while organisations issuing these instruments are required to publish audited utilisation reports and impact assessments under the Social Stock Exchange framework, ensuring greater transparency and accountability in social financing.
Author
About the Author
