Regency Fincorp Limited has completed the allotment of its ₹50 crore Series II Non-Convertible Debentures (NCDs). The company's Allotment Committee approved the issuance on August 27, 2026, finalizing the second tranche of its recently announced debt raise.

The NBFC had previously received BSE approval on August 21, 2026, for listing privately placed NCDs worth ₹110 crore. The total issuance comprises two tranches: a ₹60 crore Series I and this ₹50 crore Series II. The capital raise aims to diversify the liability profile and support lending franchise growth.

Allotment Details

The Series II tranche was allotted to three identified investors. The securities carry a coupon rate of 13% per annum and have a tenure of 36 months. The issuance is secured with a 1.35x security cover, primarily backed by secured receivables including MSME loans.

The allottees include Sunrise Gilts and Securities Private Limited, Eshiruss Financial Consultants Private Limited, and Infixin Technologies Private Limited. The debentures are listed, secured, rated, and redeemable instruments with a face value of ₹10,000 each.

Redemption Schedule

Unlike the shorter-dated Series I, the Series II NCDs feature a structured repayment plan rather than a bullet maturity. The principal will be repaid in five equal installments of 20% each, starting from the end of the 32nd month.

• 20% at the end of the 32nd month
• 20% at the end of the 33rd month
• 20% at the end of the 34th month
• 20% at the end of the 35th month
• 20% at the end of the 36th month

This staggered redemption structure reduces lump-sum repayment pressure at maturity. Interest payments continue monthly until the final maturity date of August 27, 2029.

Strategic Context

Gaurav Kumar, Managing Director, stated that the raise strengthens the funding profile and enhances ability to support continued growth. The secured and rated structure reflects confidence from funding partners in the business model.

What the Numbers Show

The completion of the Series II allotment confirms strong investor appetite for Regency Fincorp's longer-dated debt. While the shorter Series I commands a higher 13.50% coupon, the Series II offers a lower 13.00% rate with a structured exit via quarterly principal repayments in the final year. This hybrid approach likely appeals to investors seeking regular capital return alongside steady interest income.

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.