Larsen & Toubro has become the first private sector corporate in India to raise ₹500 crore through tokenised bonds with a three-year tenure. The issuance was executed under the Securities and Exchange Board of India's (SEBI) newly introduced blockchain-based tokenisation framework.

Bond issuance details

The following table summarises the key parameters of the proposed tokenized bond issuance as disclosed:

Tokenised bonds represent a digital form of debt instruments, where ownership and transfer rights are recorded on a blockchain or distributed ledger platform. The three-year duration positions this as a medium-term debt raising exercise for Larsen & Toubro.

Regulatory and technical framework

SEBI's pioneering initiative enables the tokenisation of corporate bonds using Distributed Ledger Technology (DLT), marking a significant step towards the digital transformation of India's corporate bond market. The framework is aimed at enhancing transparency, efficiency and digitalisation, while facilitating wider participation and potentially improving liquidity in the corporate bond market.

The bond issuance and related processes leverage DLT-based infrastructure, with settlement of funds facilitated through a Central Bank Digital Currency (CBDC) wallet. The integration of tokenised securities with CBDC-based settlement infrastructure represents an important advancement towards more seamless, secure and efficient digital capital-market transactions.

Strategic significance

The transaction represents an important milestone in Larsen & Toubro's continued adoption of technology-led solutions in its capital-raising and treasury operations. The use of DLT is expected to enable a more streamlined and transparent framework for recording and managing bond transactions, while supporting the evolution of India's corporate debt market.

The National Company Law Tribunal (NCLT) Mumbai Bench has admitted the joint company scheme petition involving Larsen & Toubro and L&T Realty Properties Limited. The tribunal scheduled the next hearing for October 6, 2026.

Larsen & Toubro Limited informed stock exchanges on September 1, 2026, regarding the order dated August 18, 2026. The petition seeks sanction for a Scheme of Arrangement under Sections 230 to 232 of the Companies Act, 2013.

Regulatory Proceedings

The NCLT had previously passed a first motion order on June 12, 2026, with rectification orders on June 16 and June 25, 2026. The tribunal directed Larsen & Toubro to convene meetings of equity shareholders within 60 days and send notices to creditors.

The company confirmed it has convened the shareholder meeting and issued notices to creditors as directed. The tribunal also mandated serving notice to statutory authorities including the Central Government, Registrar of Companies, Income Tax Authorities, and sectoral regulators.

Next Steps

Statutory authorities have 30 days from receipt of notice to file representations. If no representation is received, it will be presumed they have no objections. The matter is listed for hearing on October 6, 2026.