Regency Fincorp completed the allotment of ₹40 crore in 13% secured, rated, and redeemable Non-Convertible Debentures (NCDs) through a private placement on July 30, 2026. The company’s Allotment Committee approved the issuance of 40,000 debentures, each with a face value of ₹10,000, to identified institutional investors. This capital raise strengthens the firm’s liquidity position while offering investors a fixed-income instrument backed by asset charges.

The allotment was disclosed pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and SEBI Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. The meeting of the Allotment Committee commenced at 11:00 A.M. and concluded at 11:30 A.M. on July 30, 2026. Abhimanyu, Company Secretary & Compliance Officer (M No. 49176), signed the disclosure submitted to BSE Limited.

Allotment Details

The entire issue size of ₹40 crore was allotted to three entities. The securities are listed on BSE Limited and carry a coupon rate of 13% per annum. Interest payments are scheduled monthly, with the first coupon due on August 30, 2026. The principal repayment is structured in tranches over the 30-month tenor, maturing on January 30, 2029.

Investors and Security Structure

The allottees for this private placement include Motilal Oswal Financial Services Limited, Infixin Technologies Private Limited, and Eshiruss Financial Consultants Private Limited. The NCDs are secured by a first-ranking and exclusive charge over hypothecated assets, free from encumbrances. Regency Fincorp must maintain a minimum security cover ratio of 1.35x against the outstanding debenture amount at all times. At least 100% of this security cover must comprise principal loan receivables.

In the event of a default in interest or principal payment exceeding three months, a penalty interest of 3% per annum over the coupon rate will be levied on the default amount. There are no special rights or privileges attached to these instruments beyond those specified in the terms.

What the Numbers Show

The structured repayment schedule indicates a phased liability reduction strategy. Principal repayments begin at the end of the 18th month with 30% of the issue value (₹12 crore), followed by another 30% (₹12 crore) at the end of the 24th month, and the final 40% (₹16 crore) at maturity. This amortization profile reduces refinancing risk compared to a bullet repayment structure, as significant principal outflows are staggered across the final two years of the tenor.

Regency Fincorp Limited has approved a ₹30 crore issuance of Secured, Rated, Listed Non-Convertible Debentures (NCDs) to raise capital through private placement. The Board of Directors finalized the terms during its meeting on July 29, 2026, marking a significant step in the company's debt financing strategy while simultaneously noting the redemption of 95% of its earlier NCD tranche worth ₹23.75 crore.

The new issuance comprises 30,000 units with a face value of ₹10,000 each. The debentures will bear an interest rate of 14% per annum, payable monthly. Principal repayment is structured such that 99% of the amount is due at the end of the sixth month, with the remaining 1% due at maturity. The tenure of the instrument is set at 370 days from the deemed date of allotment.

Security and Trustee Arrangements

To safeguard investor interests, the outstanding principal and accrued interest will be secured by a first-ranking and exclusive charge providing a minimum security cover of 1.25x over the company's present and future receivables. These receivables must remain free from any encumbrance, charge, lien, or third-party security interest.

The company appointed Catalyst Trusteeship Limited as the Debenture Trustee for this issue. Credora Partners Private Limited was engaged as the Merchant Banker to facilitate the private placement process. Allotment will occur on the settlement date following the closure of bidding time via an Electronic Book Provider (EBP), in compliance with SEBI Master Circular dated October 15, 2025.

Key Terms of the NCD Issue

The following table summarises the key parameters of the NCD issuance:

In addition to the new issuance, the Board noted the redemption of 95% of previously issued Secured, Rated, Listed NCDs carrying ISIN INE964R07051. This older tranche had a face value of ₹1 lakh per unit and aggregated to ₹23.75 crore. The redemption was executed in accordance with the original terms and conditions of that issue.

Default Provisions

The filing outlines strict penalties for payment delays. In the event of a default in payment of interest or principal for more than three months from the due date, a penalty interest of 2% per annum over and above the coupon rate will be levied. No special rights, interests, or privileges were attached to these instruments beyond the standard security provisions.

This disclosure was made pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and SEBI Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE964R01013/33bde192-7908-429f-b954-1345544b9e8f.pdf