Regency Fincorp Limited has approved the issuance of secured, rated, and listed non-convertible debentures (NCDs) aggregating to ₹35 crore via private placement. The company’s Board of Directors sanctioned the move during a meeting held on August 17, 2026, marking a strategic step in its capital raising efforts.

The total issue size comprises a base offering of ₹20 crore and an oversubscription option (green shoe) of ₹15 crore. Each NCD carries a face value of ₹10,000, resulting in the issuance of 35,000 units in total if the green shoe is fully exercised. The instruments are proposed to be listed on BSE Limited.

Issue Structure and Terms

The NCDs have a tenure of 36 months from the deemed date of allotment. Interest will be paid monthly at a rate of 13% per annum. The principal repayment is structured uniquely, with the entire corpus repaid in equal tranches over the final five months of the instrument’s life. Specifically, 20% of the principal will be repaid at the end of the 32nd, 33rd, 34th, 35th, and 36th months respectively.

Security and Default Provisions

The debentures are secured with a security cover ratio of 1.35x against the outstanding amount, including principal and interest. At least 135% of this security cover must derive from secured receivables, specifically MSME secured loan receivables and digital lending loan receivables with zero days past due (0 DPD).

In the event of a default in payment of interest or principal for more than three months from the due date, a penalty interest of 3% per annum will be charged over and above the coupon rate on the default amount.

Regulatory Compliance

The disclosure is made pursuant to Regulation 30 read with Schedule III of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. It also aligns with SEBI Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. Allotment of the NCDs will be executed after the closure of bidding time via an Electronic Book Provider (EBP), in compliance with Master Circular SEBI/HO/DDHS/DDHS-PoD/P/CIR/2025/0000000137 dated October 15, 2025.

Regency Fincorp Limited has issued a corrigendum to its earlier disclosure regarding a non-convertible debenture (NCD) issuance, increasing the total size of the offering from ₹50 crore to ₹60 crore. The company clarified that its Board of Directors, in the meeting held on August 13, 2026, had approved the issuance of 60,000 units rather than the 50,000 units inadvertently reported in the initial filing.

The revised issuance involves 60,000 units of secured, rated, and listed NCDs, each with a face value of ₹10,000, aggregating to ₹60 crore. The instruments will be issued via private placement and listed on BSE Limited. The company stated that except for the revision in the number of units and aggregate amount, all other terms and conditions approved by the board remain unchanged.

Key Terms of the Revised Issue

The interest on the NCDs is fixed at 13.50% per annum and will be paid monthly, with principal repayment scheduled quarterly. In the event of a default in payment of interest or principal for more than three months, a penalty interest of 5% per month over the applicable coupon rate will apply. The securities are secured by a charge over assets with a security cover ratio of 1.25 times the outstanding amount.

The allotment of the NCDs will occur after the closure of bidding time via an Electronic Book Provider (EBP), in compliance with SEBI Master Circular No. HO/DDHS/DDHS-PoD/P/CIR/2025/0000000137 dated October 15, 2025. The disclosure was made pursuant to Regulation 30 read with Schedule III of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

What the Numbers Show

The increase in the issue size from ₹50 crore to ₹60 crore represents a 20% upward revision in the capital raise, while maintaining the same high coupon rate of 13.5%. This adjustment suggests the company is maximizing the capital raised under the existing board approval framework without altering the cost of debt or security structure. The 1.25x security cover ratio remains constant, indicating that the additional ₹10 crore will also be backed by principal receivables, preserving the collateral protection level for investors.