NGO Unnati to raise ₹2 cr via listing
₹2 crore from high-net-worth individuals (HNIs) by being the first NGO to list on India’s Social Stock Exchange (SSE). The NGO will look at zero coupon bonds to attract investment from foundations and HNIs tilting towards social impact causes. “The HNI community have said that this listing should happen in India.
There are people who want the Social Stock Exchange to succeed," Ramesh Swamy, director SUF, told Mint on Monday. The NGO’s issue opened on Monday for seven days and is expected to get listed on 20 November. SUF conducts training programmes for youth aged between 18 and 25 who are either underprivileged or do not possess the requisite skills for a job.
The listing comes when India Inc is increasing focus on CSR and ESG activities. Swamy said the zero coupons would appeal to investors willing to fund NGOs that are listed, audited, meet the compliance requirements and have a social impact. “Because we all know the credibility of many NGOs is questionable basically on various accounts including governance," he said.
A zero-coupon bond is a debt security that does not pay interest periodically but instead trades at a deep discount to its face value, rendering a profit at maturity when the bond is redeemed for its total face value. “The issue size is pegged at ₹2 crore, and we hope to garner at least 75% or ₹1.5 crore, which is the minimum we hope to raise," said Swamy. The SSE segment on NSE and BSE serves as a platform for Social Enterprises, including Non-profit organizations (NPOs) and for-profit enterprises (FPEs).
Swamy said he had studied listing of NGOs in some of the European countries and Brazil. The director added that there were other NGOs on the anvil keen to list on the SSE. Law firm Trilegal and
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