Latest news with #Larsen&Toubro
Mint
3 days ago
- Business
- Mint
L&T's ESG bond debut may open India's sustainable debt market—if investors stay interested
Mumbai: On 23 June, infrastructure giant Larsen & Toubro (L&T) listed India's first environmental, social & governance (ESG) bond on the National Stock Exchange under Sebi's new framework. While Indian companies have previously raised ESG debt overseas, L&T's rupee-denominated issuance is a domestic first under Sebi's guidelines. Experts believe the ₹750 million sustainability-linked bond (SLB), anchored by HSBC and offering a 6.35% coupon (competitive by market standards) suggests that investors are willing to back credible ESG-labelled issuances. But whether this debut sparks a broader trend or remains an isolated milestone hinges on a critical factor: investors' willingness to pay the 'greenium" – the difference between the yield or returns investors receive from a green bond versus a similar conventional bond. 'The primary factor will be investor interest and their willingness to offer a green or ESG premium to the bond issue compared to other fixed-income instruments," said Bose Varghese, senior director-ESG at Cyril Amarchand Mangaldas. 'Demand for rupee-denominated ESG bonds has been lukewarm because of the issuers' expectation of a 'green premium' and investors' lack of interest to offer that. But L&T has done it. We can expect more to follow", he said. Global vs local demand Globally, ESG-labelled instruments from Indian companies have seen strong demand. In 2015, Exim Bank issued a $500-million green bond, followed by Axis Bank in 2016. But in India, listed green bond issuance, including municipal bonds, stood at just ₹6,953 crore as of March 2025, according to Sebi data collated by ICRA ESG Ratings Ltd. According to data cited by Nikhil Aggarwal, CEO of investment platform Grip Invest, green bonds outperformed conventional bonds by nearly 2% in 2024. 'The positive response from institutional investors highlights strong demand, which will be critical for future issuances," said Aggarwal. R. Shankar Raman,president, whole-time director & chief financial officer (CFO) at L&T, told Mint the company aims to encourage responsible finance as a strategic pillar. 'We received interest from reputed investors and arrangers who were aligned with the ESG theme. The issuance also enabled us to secure beneficial pricing, reflecting the positive market sentiment toward credible sustainability-linked offerings," he said. Data from Prime Database showed thatIndia's green bond market saw 27 issues totalling ₹8,743 crore between FY21 and FY25. The highest was in FY22, when ₹2,677 crore was raised across 10 issues. Only two issues, worth ₹700 crore, have been recorded so far in FY26. Sebi's ESG bond framework Sebi's 5 June circular introduced a framework covering green, social, sustainability, and sustainability-linked bonds. It mandated KPI-linked disclosures and third-party verification. 'While the framework is robust, its effectiveness will depend on the independence and reputation of the third party hired," said Varghese. 'L&T has long-standing sustainability targets, including carbon and water neutrality," said Heena Khushalani, partner, climate change and sustainability services, EY India. 'For a company with strong internal momentum on ESG and measurable long-term targets, this instrument is flexible and a logical step," she added. Khushalani also pointed out that SLBs often include coupon rate adjustments based on the achievement of sustainability targets. 'If attractive coupon rates—like the 6.35% in L&T's case—become a trend, it'll incentivise more issuers," she said. To be clear, among green bonds with a three-year tenure, Avaada Solaris and Clean Sustainable Energy offer a 6.75% coupon rate, according to data from Prime Database. Still, a shortage of qualified reviewers in India could delay issuances. 'This could create bottlenecks in timely issuance and validation," Aggarwal warned. Khushalani said, 'Sebi, NSE, or platforms like GIFT City could jointly issue guidelines or empanel competent verifiers to mitigate greenwashing risks." The push for sustainable finance is likely to grow, especially among large firms with net-zero commitments. Experts said the Sebi framework has brought regulatory clarity and boosted investor confidence. 'As successful examples emerge, more corporates are likely to explore ESG bonds, not just as a funding tool but as a strategic instrument to align with global investor expectations," said L. Shivakumar, CEO of ICRA ESG Ratings Ltd. Shivakumar also highlighted India's proposed draft climate finance taxonomy, aimed at bringing consistency to ESG disclosures by aligning them with global standards. 'It will provide a structured classification system that enables better comparability and tracking of outcomes," he added. Smaller firms could struggle Despite policy momentum, experts said smaller firms could struggle to participate in the ESG debt market owing to high compliance costs, limited visibility, and weaker secondary-market liquidity. 'So far we have seen only large, reputed Indian corporations issuing ESG-labelled bonds," said Varghese. 'For smaller companies with smaller fund requirements, issuance costs may prove significant." Indian Renewable Energy Development Agency Limited issued a 10-year bond for ₹590 crore in 2019 and Dme Development Limited issued a 10-year bond for ₹775 crore in 2024. An analyst at a rating agency said, 'The real test will be how effectively Sebi ensures enforcement and prevents greenwashing. Without that, the credibility of the entire market is at stake."
The Hindu
3 days ago
- Business
- The Hindu
Markets inch higher in early trade on fresh foreign fund inflows, rally in U.S. stocks
Benchmark indices Sensex and Nifty began the trading session on an optimistic note on Friday (June 27, 2025) amid fresh foreign fund inflows and a rally in the U.S. markets. Rallying for the fourth day running, the 30-share BSE Sensex climbed 229.22 points to 83,985.09 in early trade. The 50-share NSE Nifty went up 73.5 points to 25,622.50. From the 30-Sensex firms, Larsen & Toubro, Tata Steel, State Bank of India, Tata Motors, HCL Tech, and Bharat Electronics were among the major gainers. Bajaj Finserv, HDFC Bank, Bajaj Finance, and Kotak Mahindra Bank were among the laggards. Foreign Institutional Investors (FIIs) bought equities worth ₹12,594.38 crore on Thursday, according to exchange data. In Asian markets, Japan's Nikkei 225 index traded higher while South Korea's Kospi, Shanghai's SSE Composite index and Hong Kong's Hang Seng were quoting lower. U.S. markets ended in the positive territory on Thursday. Meanwhile, an RBI report has suggested that all banks should bring down their lending rates for speedy transmission of the policy rate, which was lowered by 50 basis points earlier this month. An article published in the Reserve Bank's June Bulletin stressed that the financial conditions remained conducive to facilitating an efficient transmission of rate cuts. Global oil benchmark Brent crude climbed 0.49% to $68.06 a barrel. On Thursday, the Sensex had jumped 1,000.36 points, or 1.21 per cent, to settle at 83,755.87. The Nifty rallied 304.25 points, or 1.21 per cent, to 25,549.
New Indian Express
4 days ago
- Business
- New Indian Express
Andhra Pradesh's Quantum Valley to be first-of-its-kind in India
VIJAYAWADA: In a major leap towards making the state a global hub for deep-tech innovation, the state government is establishing the Quantum Valley in Amaravati, first-of-its-kind in India. Spearheaded by Chief Minister N Chandrababu Naidu and aligned with India's Rs 6,003 crore National Quantum Mission, the Amaravati Quantum Valley is expected to become a game-changer for both the state's economy and India's position in the global quantum ecosystem. The project is scheduled for inauguration on January 1, 2026. Spread over 50 acres, this futuristic tech park will house India's most powerful quantum computer, the 156-qubit IBM Quantum System Two, and is being developed by Larsen & Toubro (L&T). The initiative promises to generate thousands of high-end jobs, attract global investments, and support a vast ecosystem of startups, multinationals, defence, and space-tech companies. It will also drive innovation in key sectors such as healthcare, finance, cybersecurity, aerospace, and logistics. 'This is not just about job creation, it's about building a deep-tech economy where AP becomes the backbone of India's future technologies,' Secretary (ITE & C) Katamaneni Bhaskar told TNIE. 'Tech giants need operational ecosystems, and Quantum Valley will be that platform. We envision Andhra Pradesh as India's own Silicon Valley, earning revenue even by offering services and infrastructure to major players.' Quantum computing is a revolutionary technology that processes information using qubits instead of classical bits. Unlike traditional bits (which exist in 0 or 1), qubits leverage superposition and entanglement, allowing them to exist in multiple states simultaneously. This makes quantum computers capable of solving complex problems far beyond the reach of even today's fastest supercomputers. Potential applications are vast including in pharmaceuticals, quantum simulations can drastically speed up drug discovery, in finance, quantum algorithms can better model risk and optimize portfolios and in cybersecurity, quantum systems offer the promise of secure communications through post-quantum cryptography. The Valley will also facilitate breakthroughs in artificial intelligence, where quantum systems can train massive models with greater efficiency, and logistics, where complex routing can be optimized at scale.
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Business Standard
5 days ago
- Science
- Business Standard
'Jai Hind' echoes in space, as Indian enters orbit after 41 years
Evoking patriotic feelings across the nation, Indian astronaut Shubhanshu Shukla's message from space — 'Jai Hind! Jai Bharat!' — resonated on Wednesday, nearly 41 years after Rakesh Sharma's iconic words 'Saare Jahan Se Achcha' captured the hearts of millions. Shukla made history on Wednesday when Axiom Mission 4 to the International Space Station (ISS) lifted off a little after noon from the Kennedy Space Center in Florida. The mission is the first since Sharma's journey aboard Russia's Soyuz spacecraft in 1984 to be sponsored by the Indian government — a precursor to its ambitious Gaganyaan mission. The Indian Space Research Organisation is reportedly spending Rs 550 crore on the mission. 'Namaskar, my dear countrymen! What a ride! We are back in space once again after 41 years. It's an amazing ride. We are revolving around the Earth at a speed of 7.5 kilometres per second,' Shukla said. The successful launch is likely to be a boost for Indian private sector space majors such as Larsen & Toubro, Tata and Ananth Technologies, while startups like Dhruva Space, Bellatrix Aerospace, Skyroot and Agnikul Cosmos are also expected to benefit from increased activity in the sector. 'The Tiranga embossed on my shoulders tells me that I am with all of you. This journey of mine is not a beginning to the ISS but to India's Human Space Programme,' he said. This comes at a time when a recent FICCI-EY report projected India's space sector to grow from around $8.4 billion in 2024 to $44 billion by 2033. Shukla will become the first Indian to reach the ISS on Thursday, after an approximately 28-hour journey. The Axiom-4 mission is a commercial venture between the Houston-based Axiom Space and NASA. The 14-day mission includes crew members from the US, Poland and Hungary, and will feature around 60 intensive research experiments representing 31 countries, seven of which have been proposed by Indian researchers. 'The Indian astronaut, Group Captain Shubhanshu Shukla, is on the way to become the first Indian to go to the International Space Station. He carries with him the wishes, hopes and aspirations of 1.4 billion Indians,' said Prime Minister Narendra Modi. President Droupadi Murmu called the mission a demonstration of the Sanskrit ideal 'Vasudhaiva Kutumbakam', meaning the world is one family. 'He and his fellow astronauts of Axiom Mission 4 from the US, Poland and Hungary prove the world is indeed one family — Vasudhaiva Kutumbakam,' she said. Launched aboard a SpaceX Falcon 9 Block 5 rocket, the Crew Dragon C213 capsule carried Shukla into low Earth orbit. He is one of the four astronauts shortlisted for India's maiden human spaceflight mission, Gaganyaan, currently slated for late 2026 or early 2027. His role on Ax-4 is to pilot the Dragon spacecraft and to bring home crucial operational experience for the Gaganyaan programme. 'We are proud and happy to see Shubhanshu Shukla become the second Indian to travel to space. This journey is a testament to the growing global footprint of India in space exploration and is a stepping stone to what we want to achieve with Gaganyaan, our own indigenous human spaceflight programme,' said A K Bhatt, director general, Indian Space Association (ISpA). 'India is now in the final stages of preparation for the Gaganyaan mission, with firms like Larsen & Toubro, Tata and Ananth Technologies playing a critical role alongside our vibrant startups. If all goes as planned, we are just one or two years away from realising the dream of sending Indian astronauts to space on an entirely indigenous platform. The success of missions like Axiom-4 inspires our ecosystem and strengthens our resolve to make India a leading force in the new era of space exploration,' Bhatt added. It was on February 27 last year that Prime Minister Narendra Modi unveiled the names of the four astronauts who would carry India's spaceflight ambitions: Prashanth Balakrishnan Nair, Ajit Krishnan, Angad Prathap and Shukla. 'This mission marks a big step for India, not just in human spaceflight, but also for our growing private space industry. At Bellatrix Aerospace, we share this spirit of pushing and redefining boundaries. We believe missions like this will inspire the next generation of innovators and help build a strong, self-reliant space ecosystem,' said Yashas Karanam, co-founder and chief operating officer, Bellatrix Aerospace. According to media reports, research is also being contributed by ESA (Europe), NASA and Hungary's HUNOR programme. Polish experiments will investigate neurofeedback, gut microbiome changes and wearable health technology, while Hungary will explore cognition, motor skills and even fruit fly resilience. As per industry estimates, India's share of the global space market will quadruple from 2 per cent to 8 per cent by 2033. However, the sector will need a net investment of $22 billion to reach that target. A group of around 300 startups are already working to make this a reality through various segments such as propulsion systems, launch vehicles and satellite design. Even legacy mapping companies like MapmyIndia are joining the action by providing geospatial solutions and navigation technology.
Business Standard
5 days ago
- Business
- Business Standard
LTTS secures 5-year contract worth $50 million from global energy major
L&T Technology Services said that its Sustainability segment has been selected by one of the world's leading energy companies as its exclusive global engineering partner for providing enterprise data and digital services. The five-year agreement, valued at over $50 million, underscores the clients long-term commitment to sustainability, innovation and digital transformation. This strategic partnership builds on a trusted relationship between the client and LTTS spanning over a decade. As per the agreement, LTTS will provide enterprise data and digital services for the clients affiliates globally. The deal has been finalized as a long-term framework agreement. Amit Chadha, CEO and managing director of L&T Technology Services, said: This large deal win in our Sustainability segment with a leading energy major has been possible due to LTTS unique credentials which include enabling over 600 major plants across the globe. By combining our proven track record in plant engineering with state-of-the-art new age technologies, we will support the client in their digital transformation while enhancing overall operational excellence. L&T Technology Services (LTTS) is a global leader in engineering and technology services. A listed subsidiary of Larsen & Toubro (L&T), we offer design, development, testing, and maintenance services across products and processes. The company's consolidated net profit declined 3.5% to Rs 311.1 crore in Q4 FY25, compared to Rs 322.4 crore in Q3 FY25. Revenue from operations stood at Rs 2,982.4 crore in the March 2025 quarter, marking a 12.42% increase from Rs 2,653.0 crore reported in the previous quarter. The scrip rose 0.49% to currently trade at Rs 4352 on the BSE.
