Regency Fincorp approved the allotment of ₹60 crore worth of 13% secured, redeemable non-convertible debentures (NCDs) on September 11, 2026. The issuance was executed via private placement to identified investors.

The company initially proposed an issue size of ₹75 crore but allotted only ₹60 crore, representing a partial subscription. The allotment committee meeting concluded at 12:20 pm on September 11, 2026.

Issue Details

The NCDs carry a face value of ₹10,000 each. A total of 60,000 debentures were allotted. The instruments are listed on BSE Limited and mature in March 2029.

Allottees and Terms

Motilal Oswal Financial Services Ltd and Eshiruss Financial Consultants Private Limited were the identified allottees for this issuance. The debentures are rated and secured with a security cover ratio of 1.35 times the outstanding amount. This cover comprises loans receivables that are 50% secured and 50% unsecured, with zero days past due.

Repayment Schedule

The principal repayment is structured in three tranches over the 30-month tenor:

• End of 18th month from allotment
• End of 24th month from allotment
• End of 30th month from allotment

Interest payments are scheduled monthly. In the event of default exceeding three months, a penalty of 3% per annum applies over the coupon rate on the default amount.

Regency Fincorp has approved the issuance of ₹50 crore worth of secured, rated, listed non-convertible debentures (NCDs) on a private placement basis. The Board of Directors finalized the revised structure during its meeting held on September 9, 2026. This update supersedes the earlier reported ₹75 crore proposal.

The company, formerly known as Regency Investments Limited, confirmed the approval in a press release issued on the same date. The funds raised will be deployed to grow two core business areas: MSME Secured Lending and Digital Lending.

Issue Structure

The issuance comprises a base issue of ₹30 crore along with an oversubscription option (green shoe) of ₹20 crore. The NCDs will have a tenure of 15 months from the deemed date of allotment. Each debenture carries a face value of ₹10,000. The interest offered is 12.00% per annum, payable monthly.

Strategic Rationale

The funds raised will support the company’s stable, asset-backed secured lending foundation while fueling its digital lending growth engine. This capital raise aligns with Reserve Bank of India directives urging NBFCs to maintain a diversified funding base while pursuing prudent risk management and asset quality standards.

Financial Context

Managing Director Gaurav Kumar highlighted that the company grew its assets under management (AUM) by 45% year-on-year in FY26. He noted that the net interest margin (NIM) stood at 10.3%. The decision to raise debt through the secured NCD route was driven by credit offtake, aiming to scale both secured and digital lending operations while maintaining disciplined risk approaches.

Additional Board Approvals

During the same meeting, the Board also considered proposals for:

• Appointment of Catalyst Trusteeship Limited as Trustee for the NCD issuance.
• Appointment of Credora Partners Private Limited as Merchant Banker for the issuance.
• Issuance of Employee Stock Options (ESOPs) to eligible employees.
• Raising funds through Equity Shares, Warrants on Preferential Basis, or Compulsory Convertible Debentures (CCDs), subject to regulatory approvals.