Regency Fincorp Limited has raised ₹110 crore through the issuance of secured, rated, and listed Non-Convertible Debentures (NCDs) via private placement. The NBFC executed two separate tranches to diversify its liability profile and support the growth of its lending franchise, which serves MSMEs, retail customers, and emerging businesses.

The first tranche involves a ₹60 crore issuance comprising up to 60,000 units with a face value of ₹10,000 each. These NCDs carry a coupon rate of 13.50% per annum, payable monthly, with a tenure of 15 months. The issuance is secured with a 1.25x security cover.

The second tranche comprises a ₹50 crore issuance of up to 50,000 units, also with a face value of ₹10,000 each. This tranche carries a slightly lower coupon of 13% per annum, payable monthly, but extends over a longer tenure of 36 months. It is secured with a higher security cover of 1.35x, including secured receivables.

Issuance Details

Strategic Implications

Gaurav Kumar, Managing Director of Regency Fincorp Limited, stated that the raise strengthens the company's funding profile and enhances its ability to support continued growth. He noted that the secured and rated structure reflects confidence from funding partners in the company's business model and credit discipline.

The company emphasized that these funds provide greater financial flexibility to pursue sustainable portfolio growth while maintaining a disciplined approach to risk, asset quality, and responsible lending. The dual-tranche structure allows Regency Fincorp to balance short-term liquidity needs with longer-term funding stability.

What the Numbers Show

The pricing structure reveals a clear term premium in the current market environment. The shorter-dated ₹60 crore tranche commands a 50 basis point premium (13.50%) over the longer-dated ₹50 crore tranche (13.00%). This inversion suggests that lenders are demanding higher compensation for shorter-term exposure or that the company is optimizing its cost of capital by locking in lower rates for longer tenures where possible. Additionally, the higher security cover of 1.35x on the longer tenure tranche indicates a risk-mitigation strategy aligned with the extended maturity profile.

Regency Fincorp Limited has completed the allotment of its revised ₹60 crore non-convertible debenture (NCD) issue. The company’s Allotment Committee approved the allotment of 60,000 units on August 19, 2026, confirming the full subscription of the offering from four identified investors. This follows a corrigendum issued earlier in August, which clarified that the Board had originally approved 60,000 units rather than the 50,000 units inadvertently reported in initial filings.

The finalised issue involves secured, rated, and listed NCDs with a face value of ₹10,000 each. The instruments were issued via private placement and are listed on BSE Limited. The allotment confirms that the company successfully raised the full revised amount under the existing board approval framework without altering the cost of debt or security structure established in the initial offer document.

Allotment Details

The securities are secured by a charge over assets with a security cover ratio of 1.25 times the outstanding amount. At least 125% of this security cover is derived from principal receivables. 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.

Investors and Repayment Schedule

The NCDs were allotted to four identified investors: RNB Corporate Services Private Limited, LC Capital India Private Limited, Gripvest Asset Lix LLP, and Blue Ashva Mangalam Large Value Fund-I.

Interest on the NCDs is fixed at 13.50% per annum and is paid monthly. Principal repayment is scheduled quarterly over the 15-month tenure. The first coupon payment is due on September 19, 2026, while the first principal repayment of ₹2,000 per unit is scheduled for November 19, 2026. The final maturity date for the instrument is November 19, 2027.

What the Numbers Show

The completion of the full ₹60 crore allotment indicates strong investor appetite for the company’s debt instruments despite the relatively high coupon rate of 13.5%. The structured repayment schedule, featuring quarterly principal repayments starting from the third month, reduces the refinancing risk at maturity compared to bullet repayment structures. The consistent 1.25x security cover backed primarily by principal receivables provides a stable collateral base for investors throughout the 15-month tenure.