Regency Fincorp Limited allotted 30,000 non-convertible debentures (NCDs) aggregating to ₹30 crore on October 19, 2026. The allotment was executed through a private placement basis at a coupon rate of 13%.

The securities are listed, secured, rated, and redeemable, with a face value of ₹10,000 each. The allotment committee approved the issuance during its meeting held on the same date. The instruments carry a tenor of 36 months, maturing on October 19, 2029.

Allotment Details

The NCDs were allotted to three identified entities: Eshiruss Financial Consultants Private Limited, Infixin Technologies Private Limited, and Sunrise Investment Opportunities Fund. The issue size and allotted size both stand at ₹30 crore. The securities are listed on BSE Limited.

Security and Redemption Structure

The proposed NCDs are secured by a charge over assets with a security cover ratio of 1.35x (135%) of the outstanding amount. This security is derived from 50% secured and 50% unsecured principal loan receivables having zero days past due (DPD). In the event of default in payment of interest or principal for more than three months, an additional interest of 3% per annum over the coupon rate will apply.

Redemption is structured as a partial amortization schedule rather than a bullet payment at maturity:

• 25% of principal redeemed at the end of the 24th month.
• 25% of principal redeemed at the end of the 30th month.
• 50% of principal redeemed at the end of the 36th month.

What the Numbers Show

The redemption schedule reveals a front-loaded principal repayment structure relative to the total tenure. By the end of the 30th month, half of the principal (₹15 crore) is returned to investors, significantly reducing the issuer's debt burden before the final maturity date. The coupon payments vary slightly based on the number of days in each coupon period, ranging from approximately ₹53 to ₹110 per debenture per month, reflecting the monthly accrual nature of the interest calculation on the face value of ₹10,000.

Regency Fincorp Limited has submitted a revised press release to BSE regarding its ₹312.15 crore fund-raising plan via preferential issue of equity shares and warrants. The revision, filed on October 16, 2026, updates the specific allocation of proceeds for acquisitions and lending activities.

The Board approved the issuance on October 16, 2026, subject to shareholder approval at the Extra-Ordinary General Meeting scheduled for November 11, 2026. The revised disclosure supersedes an earlier version following a corrigendum to the board meeting outcome.

Preferential issue details

The Board approved two distinct components of the preferential issue under SEBI ICDR Regulations, 2018:

• Equity Shares: Issuance of up to 1,42,66,412 equity shares of face value ₹10 each at a price of ₹50.50 per share (including a premium of ₹40.50). This aggregates to approximately ₹72.05 crore.
• Warrants Convertible into Equity Shares: Issuance of up to 4,75,46,030 warrants convertible into equivalent equity shares at the same price of ₹50.50 per warrant. This aggregates to approximately ₹240.11 crore.

Each warrant is convertible into one equity share within 18 months from the date of allotment. The relevant date for calculating the issue price was set as October 12, 2026. A valuation report dated October 15, 2026, by Registered Valuer Sandeep Agrawal was noted for determining the price. Infometrics Valuation and Rating Limited has been appointed as the monitoring agency for the issuance.

Fund utilization plan

The company outlined a specific deployment strategy for the raised capital, focusing on expanding its lending footprint through acquisitions and direct lending. The revised data specifies updated allocations for digital lending, gold loans, MSME loans, and general corporate purposes.

Capital structure and ESOP 2026

To accommodate the new securities, the Board approved increasing the authorized share capital from ₹95 crore to ₹152 crore. This involves amending Clause V of the Memorandum of Association to reflect 15,20,00,000 equity shares of ₹10 each.

Additionally, based on the Nomination and Remuneration Committee's recommendation, the Board approved the Regency Fincorp Limited Employee Stock Option Scheme 2026. Key features include:

• A pool of 1,00,00,000 options exercisable into fully paid-up equity shares.
• Exercise price equal to the market price on the relevant date, not less than face value.
• Maximum exercise period of 10 years from the date of vesting.

Allotment structure and promoter holding

The proposed preferential issue involves 61 allottees for equity shares and 56 allottees for convertible warrants, spanning both promoter and public categories. The company stated that the fresh capital infusion by promoters will ensure that their shareholding percentage remains unaffected post the fundraise.

Sarfaraz Mallick, Co-founder and Chief Financial Officer, noted that the fundraise aims to strengthen the capital base and support strategic priorities, including diversifying the lending portfolio and expanding business scale through technology-led opportunities.

What the numbers show

The revised fund utilization plan shifts significant capital towards direct lending and general corporate purposes compared to earlier estimates. Specifically, the allocation for MSME loans increased to ₹65 crore from previous broader estimates, while general corporate purposes rose to ₹47.15 crore. Concurrently, the acquisition budget for the digital lending platform was adjusted to ₹125 crore. This reallocation suggests a dual strategy: aggressive inorganic growth via acquisitions while simultaneously bolstering the balance sheet for organic MSME lending expansion.