Regency Fincorp Limited board approved the issuance of secured, rated, listed non-convertible debentures (NCDs) aggregating ₹40 crore on July 14, 2026. The issuance will be conducted on a private placement basis, comprising a base issue of ₹20 crore and a green shoe option of ₹20 crore. The funds aim to support the company's capital base and liquidity position, aligning with its strategy to expand secured lending and digital operations.

The NCDs have a face value of ₹10,000 each and a tenure of 12 months and 5 days. The instruments offer a coupon rate of 14.00% per annum, with interest payable monthly. Principal repayment is structured such that 95% is due at the end of the 6th month from the deemed date of allotment, and the remaining 5% upon maturity. The debentures will be listed on BSE Limited.

Key Appointments

The board appointed key intermediaries for the issuance process. Catalyst Trusteeship Limited was appointed as the Trustee, while Credora Partners Private Limited will serve as the Merchant Banker. Infomerics Valuation and Rating Limited was designated as the credit rating agency for the issue.

Issue Details

The security cover for the debentures is set at 1.25 times the outstanding amounts, including principal and interest. The allotment will occur after the closure of the bidding time via the Electronic Book Provider (EBP) mechanism. In the event of a delay in payment exceeding three months, the company will pay an additional 5% per annum over the coupon rate on the default amount.

Regency Fincorp received approval from BSE Limited on July 8, 2026, to list 58,62,879 equity shares following the conversion of warrants allotted to non-promoter shareholders. The shares, with a face value of ₹10 each, were issued at a premium of ₹12 per share. This listing approval allows the company to proceed with the formal admission of these shares to the exchange, subject to final trading permissions.

The approval was communicated via BSE letter reference number LOD/PREF/GB/FIP/483/2026-27. The shares bear distinctive numbers ranging from 80171072 to 86033950. The conversion pertains to warrants issued on a preferential basis to the Non-Promoter and Public Category shareholders.

Conditions for Trading Approval

Trading in these shares will commence only after the company fulfills specific regulatory requirements. Regency Fincorp must submit the listing approval from the National Stock Exchange of India Ltd., if applicable, and confirmation letters from NSDL and CDSL regarding the crediting of shares to beneficiary accounts. Additionally, the company must provide confirmation regarding the lock-in of pre-preferential holdings if applicable.

Regulatory Compliance

The company is required to ensure compliance with Regulation 167 of the SEBI (ICDR) Regulations. Furthermore, if the change in shareholding exceeds two per cent of the total paid-up share capital, the company must file the shareholding pattern in XBRL mode under Regulation 31(1)(c) of the SEBI LODR Regulations, 2015.

Timeline and Penalties

Pursuant to Schedule XIX of ICDR Regulations and a SEBI circular dated June 21, 2023, Regency Fincorp must apply for trading approval within seven working days from the date of listing approval. Failure to comply with this timeline will result in penalties as specified by the market regulator.