Larsen & Toubro allots ₹500 crore tokenised NCDs at 7.40% coupon
- Larsen & Toubro allotted ₹500 crore of 7.40% tokenised NCDs via private placement
- The three-year instruments mature on September 9, 2029, with annual interest payments
- Bonds are listed on the NSE and issued on NSDL's Distributed Ledger Technology platform
- The issuance was executed under SEBI's blockchain-based tokenisation framework
*this image is generated using AI for illustrative purposes only.
Larsen & Toubro has completed the allotment of ₹500 crore worth of tokenised non-convertible debentures (NCDs) through a private placement. The issuance marks the finalisation of the company's pioneering digital debt raise under the Securities and Exchange Board of India's (SEBI) blockchain-based framework.
Bond issuance details
The company allotted 50,000 unsecured, redeemable NCDs with a face value of ₹1 lakh each. The instruments carry a coupon rate of 7.40% with interest payable annually. The bonds have a tenure of three years, maturing on September 9, 2029.
| Parameter | Details |
|---|---|
| Instrument | Tokenised NCDs |
| Amount | ₹500 crore |
| Coupon Rate | 7.40% |
| Tenor | Three years |
| Maturity Date | September 9, 2029 |
| Listing | National Stock Exchange (NSE) |
The NCDs are issued in tokenised form on the National Securities Depository Limited's (NSDL) Distributed Ledger Technology (DLT)-based platform. This structure allows for the digital recording of ownership and transfer rights.
Regulatory and technical framework
The transaction was executed pursuant to Regulation 30 and 51 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. SEBI's framework enables the tokenisation of corporate bonds using DLT, aiming to enhance transparency and efficiency in the corporate bond market.
Settlement and redemption processes leverage this DLT infrastructure. The integration of tokenised securities with digital settlement mechanisms represents an advancement in capital-market transactions, facilitating wider participation and potentially improved liquidity.
Strategic significance
This completed issuance solidifies Larsen & Toubro's position as the first private sector corporate in India to utilise this specific regulatory pathway for digital debt. The use of DLT is expected to streamline treasury operations by providing a more transparent framework for managing bond transactions, supporting the broader evolution of India's corporate debt market.
Historical Stock Returns for Larsen & Toubro
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.29% | -2.75% | -7.06% | +5.50% | +1.94% | +118.48% |
How might L&T's successful tokenised NCD issuance influence other large-cap Indian corporates to adopt DLT for their future debt financing needs?
What impact could the integration of NSDL's DLT platform have on the liquidity and secondary market trading volumes of corporate bonds in India?
Are there potential regulatory hurdles or compliance costs that smaller mid-cap companies might face when attempting to replicate this tokenisation framework?
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