Rs 5,79,100 Crore Order Book: Civil Construction Giant Lists India’s First ESG Bonds Worth Rs 500 Crore on NSE
The stock is up by 24 per cent from its 52-week low and has given multibagger returns of over 3280 per cent in the last 5 years.
Larsen & Toubro (L&T), a leading Indian infrastructure and technology conglomerate, has made a landmark move by listing India's first ESG (Environmental, Social and Governance) bonds on the National Stock Exchange (NSE). This pioneering initiative, announced on June 23, 2025, saw L&T successfully raise Rs 500 crore through Non-Convertible Debentures (NCDs). These NCDs carry a coupon rate of 6.35 per cent and have a three-year maturity period, maturing on June 19, 2028, with annual interest payments. This issuance was conducted under the Securities and Exchange Board of India’s (SEBI) recently introduced ESG and sustainability-linked bond framework, which came into effect on June 5, 2025.
Issued in partnership with HSBC, which acted as the sole lead arranger, this transaction strictly adheres to SEBI's new regulatory guidelines, which aim to enhance transparency and accountability for bond issuers. The framework mandates comprehensive disclosures, including sustainability objectives, external evaluations like Second-Party Opinions (SPOs) and continuous post-issuance reporting with clearly defined Key Performance Indicators (KPIs) to measure ESG impact. As part of this sustainability-linked bond agreement, L&T has committed to ambitious environmental goals, including measurable reductions in freshwater withdrawal intensity and greenhouse gas emissions, aligning with the company's broader vision of achieving water neutrality by 2035 and carbon neutrality by 2040. This successful issuance not only signifies a major milestone in India's financial markets but also underscores the increasing investor interest in ESG-compliant financial instruments, setting a precedent for future sustainable financing endeavours in the country.
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About the Company
Larsen & Toubro (L&T) is a massive Indian conglomerate with its fingers in many pies. Their core business is engineering, procurement and construction (EPC) solutions across various sectors like infrastructure, power, hydrocarbon (oil & gas) and defence. They also manufacture custom-designed machinery for these industries and even have a real estate arm. L&T is a major player in IT services through subsidiaries like L&T Infotech and Mindtree and provides financial services like rural and housing finance through L&T Finance Holdings. They even handle development projects involving infrastructure, toll management and power generation.
According to Quarterly Results, the net sales increased by 11 per cent to Rs 74,392.28 crore and net profit increased by 25 per cent to Rs 5,497.26 crore in Q4FY25 compared to Q4FY24. Looking at its annual results, the net sales increased by 16 per cent to Rs 2,55,734.45 crore and the net profit increased by 15 per cent to Rs 15,037.11 crore in FY25 compared to FY24.
The company has a market cap of Rs 4.97 lakh crore and has been maintaining a healthy dividend payout of 33 per cent. Life Insurance Corporation of India (LIC) owns a 13.25 per cent stake in the company as of March 2025. The company has a robust order book valued at Rs 5,79,100 crore as of March 31, 2025. The stock is up by 24 per cent from its 52-week low and has given multibagger returns of over 3280 per cent in the last 5 years.
Disclaimer: The article is for informational purposes only and not investment advice.