Gurugram-based non-profit Lotus Petal Foundation (LPF) has launched a ₹1 crore Zero Coupon Zero Principal (ZCZP) bond issue on the BSE Social Stock Exchange (SSE), becoming the first organisation to do so after the Centre allowed eligible investments in these bonds to qualify as corporate social responsibility (CSR) spending.
The public issue opened on Monday and will remain available for subscription until July 31. According to the foundation, nearly 12 per cent of the issue size was subscribed on the first day itself, reflecting early interest from CSR contributors and social impact investors.
Among the early participants is GTPL Hathway Ltd., which has supported Lotus Petal Foundation through its CSR initiatives for the past seven years. The company has committed to subscribe to up to 15 per cent of the bond issue through its CSR allocation.
Kushal Raj Chakravorty, Founder and Managing Trustee of Lotus Petal Foundation, said the commitment from GTPL Hathway demonstrates the growing confidence of corporate India in the Social Stock Exchange as a transparent and credible platform for funding measurable social impact initiatives. He noted that the partnership also reflects the increasing willingness of companies to explore innovative avenues for meeting their CSR objectives.
The bond issue follows a recent policy change by the Government of India permitting companies to allocate up to 10 per cent of their annual CSR expenditure towards eligible ZCZP instruments listed on recognised social stock exchanges. The move is expected to provide registered non-profit organisations with a new and structured fundraising mechanism while encouraging greater corporate participation in social development projects.
Lotus Petal Foundation plans to utilise the ₹1 crore raised through the issue to finance one year of education for 160 students studying in Classes 3 and 5 at its Lotus Petal Senior Secondary School in Dhunela, Gurugram. The minimum investment amount has been fixed at ₹1,000.
The funds will support a range of educational needs, including tuition fees, textbooks, uniforms, stationery, transport, digital learning resources, and nutritious breakfast and lunch for the students. The initiative is aimed at ensuring uninterrupted access to quality education for children from economically disadvantaged backgrounds.
Established in 2011, Lotus Petal Foundation focuses on education, nutrition, and livelihood development. It operates a CBSE-affiliated senior secondary school that serves around 1,200 students. In addition, its digital learning platform reaches more than 12,000 learners, while its government school transformation projects and STEM scholarship programmes seek to improve educational opportunities for underprivileged children across multiple communities.
Zero Coupon Zero Principal bonds differ from conventional debt instruments because they neither pay periodic interest nor return the principal amount to investors. Instead, they function as philanthropic investment tools, enabling contributors to support specific social initiatives. Organisations issuing these bonds are required to maintain transparency by providing audited reports on fund utilisation and the social impact achieved under the Social Stock Exchange framework.
Over the past 15 years, Lotus Petal Foundation has mobilised an estimated ₹180–200 crore through CSR partnerships, individual donations, and international contributions. Looking ahead, the organisation plans to expand its school campus and significantly strengthen its digital learning platform to extend quality education to a larger number of students across India.
Gurugram-based non-profit Lotus Petal Foundation (LPF) has launched a ₹1 crore Zero Coupon Zero Principal (ZCZP) bond issue on the BSE Social Stock Exchange (SSE), becoming the first organisation to do so after the Centre allowed eligible investments in these bonds to qualify as corporate social responsibility (CSR) spending.
The public issue opened on Monday and will remain available for subscription until July 31. According to the foundation, nearly 12 per cent of the issue size was subscribed on the first day itself, reflecting early interest from CSR contributors and social impact investors.
Among the early participants is GTPL Hathway Ltd., which has supported Lotus Petal Foundation through its CSR initiatives for the past seven years. The company has committed to subscribe to up to 15 per cent of the bond issue through its CSR allocation.
Kushal Raj Chakravorty, Founder and Managing Trustee of Lotus Petal Foundation, said the commitment from GTPL Hathway demonstrates the growing confidence of corporate India in the Social Stock Exchange as a transparent and credible platform for funding measurable social impact initiatives. He noted that the partnership also reflects the increasing willingness of companies to explore innovative avenues for meeting their CSR objectives.
The bond issue follows a recent policy change by the Government of India permitting companies to allocate up to 10 per cent of their annual CSR expenditure towards eligible ZCZP instruments listed on recognised social stock exchanges. The move is expected to provide registered non-profit organisations with a new and structured fundraising mechanism while encouraging greater corporate participation in social development projects.
Lotus Petal Foundation plans to utilise the ₹1 crore raised through the issue to finance one year of education for 160 students studying in Classes 3 and 5 at its Lotus Petal Senior Secondary School in Dhunela, Gurugram. The minimum investment amount has been fixed at ₹1,000.
The funds will support a range of educational needs, including tuition fees, textbooks, uniforms, stationery, transport, digital learning resources, and nutritious breakfast and lunch for the students. The initiative is aimed at ensuring uninterrupted access to quality education for children from economically disadvantaged backgrounds.
Established in 2011, Lotus Petal Foundation focuses on education, nutrition, and livelihood development. It operates a CBSE-affiliated senior secondary school that serves around 1,200 students. In addition, its digital learning platform reaches more than 12,000 learners, while its government school transformation projects and STEM scholarship programmes seek to improve educational opportunities for underprivileged children across multiple communities.
Zero Coupon Zero Principal bonds differ from conventional debt instruments because they neither pay periodic interest nor return the principal amount to investors. Instead, they function as philanthropic investment tools, enabling contributors to support specific social initiatives. Organisations issuing these bonds are required to maintain transparency by providing audited reports on fund utilisation and the social impact achieved under the Social Stock Exchange framework.
Over the past 15 years, Lotus Petal Foundation has mobilised an estimated ₹180–200 crore through CSR partnerships, individual donations, and international contributions. Looking ahead, the organisation plans to expand its school campus and significantly strengthen its digital learning platform to extend quality education to a larger number of students across India.
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