Regency Fincorp allots ₹40 Cr NCDs at 14% coupon

Regency Fincorp Limited has allotted 40,000 secured non-convertible debentures (NCDs) aggregating ₹40 crore on July 23, 2026. The instruments carry a coupon rate of 14.00% per annum and were issued on a private placement basis to identified investors, including RNB Corporate Services Private Limited and L C Capital India Private Limited. The allotment committee approved the issuance, which is listed on BSE Limited, to raise capital for the company's operations.

Issue Details

The NCDs have a face value of ₹10,000 each and a tenor of 12 months 5 days, maturing on July 28, 2027. Interest is payable monthly, while the principal repayment is structured in two installments: 95% at the end of the 6th month and the remaining 5% at maturity. The security cover for the debentures is set at 1.25 times the outstanding amounts, secured by way of hypothecation over receivables (performing loans).

Particulars	Details
Total Issue Size	₹40 Crore
Coupon Rate	14.00% p.a.
Tenor	12 Months 5 Days
Interest Payment	Monthly
Security Cover Ratio	1.25x
Date of Allotment	July 23, 2026
Date of Maturity	July 28, 2027

In the event of a delay in payment exceeding three months, the company will pay an additional penalty of 5% per month over the coupon rate on the outstanding principal amount for the period of default. The disclosure was made pursuant to Regulation 30 of the SEBI Listing Regulations.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.31%	+6.98%	+17.60%	+50.26%	+45.32%	+641.04%

Regency Fincorp Limited reported a standalone net profit of ₹7.0 crore for the quarter ended June 30, 2026, a 123% increase from ₹3.2 crore in the corresponding period of the previous year. Total income for the quarter stood at ₹17.4 crore, up 86.5% from ₹9.3 crore in Q1FY26, primarily driven by a surge in net interest income and fee income. The board of directors approved the unaudited standalone and consolidated financial results for the period during a meeting held on July 20, 2026.

The company's assets under management (AUM) grew to ₹345.2 crore from ₹181.9 crore year-on-year, while disbursements increased to ₹90.0 crore from ₹27.7 crore. The secured loan book expanded by 45% quarter-on-quarter to approximately ₹230.1 crore as of June 2026, supported by the strategic reduction of unsecured loan exposure from 26% to 18% of the portfolio. Additionally, the company launched its digital lending platform, Cash My Salary, building a digital loan portfolio of approximately ₹23.4 crore within the first quarter.

Key Financial Metrics (Consolidated)

Particulars (₹ crore)	Q1FY27 (Unaudited)	Q1FY26 (Unaudited)	Y-o-Y
Total Income	17.4	9.3	86.5%
Net Interest Income & Fee Income	12.0	6.9	73.9%
Profit After Tax	7.0	3.2	122.6%

Operational Metrics

Particulars	Q1FY27	Q1FY26
AUM (₹ crore)	345.2	181.9
Disbursement (₹ crore)	90.0	27.7
Net Interest Margin	3.7%	1.8%
Return on Assets	1.9%	1.4%
Gross NPA	0.98%	0.40%
Net NPA	0.74%	0.30%

Capital Raising and Funding

The board approved the issuance of secured, rated, listed, non-convertible debentures (NCDs) aggregating up to ₹25 crore on a private placement basis. The company has successfully raised ₹110 crore through listed NCDs and term loans from banks during FY27 to date to strengthen liquidity. The total financial indebtedness of the listed entity was reported at ₹215.37 crore as of June 30, 2026.