Regency Fincorp Limited has announced two strategic debt fundraising transactions aggregating ₹35 crore through Non-Convertible Debentures (NCDs), with an additional greenshoe option of ₹25 crore. The proceeds will be utilised for general corporate purposes and to support onward lending operations, including expansion and growth of its loan portfolio, in accordance with applicable RBI guidelines. The company has executed the first transaction for ₹10 crore and signed a term sheet for a second tranche of listed NCDs aggregating ₹25 crore, proposed to be issued in the third week of June.

The Board of Directors approved the allotment of the first tranche at its meeting held on June 2, 2026. This tranche comprises 1000 secured, rated, redeemable NCDs allotted to LC Venture Debt Fund at a coupon rate of 15%. The instruments have a face value of ₹1,00,000 each and a tenor of 19 months, maturing on January 1, 2028. The NCDs will be listed on BSE Limited. The borrowing is secured through a charge over the company's performing loan receivables, maintained at 1.25 times the outstanding amount, along with personal guarantees from Mr. Gaurav Kumar, Promoter, and Mr. Sarfaraz Mallick, Whole-time Director & CFO.

Terms of the Debentures

The repayment structure involves monthly payments of both interest and principal. The total interest payable over the tenor amounts to ₹1,24,73,683. In the event of a delay in payment of interest or principal for more than three months, the company will pay a penalty of 2.00% per month on the overdue amount from the due date until the actual date of payment, over and above the interest rate.

Repayment Schedule

The principal and interest will be repaid in 19 monthly installments starting July 1, 2026. The final installment is due on January 1, 2028. The security structure ensures asset coverage to protect the interests of the debenture holders. The second tranche of listed NCDs, with a base issue size of ₹25 crore and a greenshoe option of ₹25 crore, is subject to the execution of definitive agreements, completion of due diligence, and regulatory approvals.

Regency Fincorp Limited has scheduled a board meeting for April 4, 2026, to consider and approve the issuance of secured non-convertible debentures (NCDs) on a private placement basis to residents and non-residents. The meeting, convened under Regulation 29 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, will also address the appointment of a debenture trustee for the proposed issue. Additionally, the board will deliberate on a call for the payment of the balance 75% amount on convertible share warrants that were allotted on December 28, 2024, for the allotment of fully paid-up equity shares.

Agenda Items

The board's agenda focuses on capital raising and compliance measures. The primary item is the issuance of listed, rated, secured, and redeemable NCDs. The company also intends to formalize the appointment of a debenture trustee, a mandatory requirement for such debt instruments. Furthermore, the directors will consider activating the call option for the remaining 75% payment on the previously allotted convertible share warrants.

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