Regency Fincorp Limited received approval from BSE Limited for the listing of its privately placed Non-Convertible Debentures (NCDs) on the Debt Market Segment. The exchange issued the approval notice dated September 24, 2026, confirming the eligibility of the securities for trading.

This regulatory clearance follows the company's board approval on September 23, 2026, to issue 350 NCDs aggregating ₹3.5 crore. These securities carry a low coupon rate of 1% and a tenor of 18 months. The approval comes just one day after the company allotted a separate tranche of ₹50 crore NCDs at a significantly higher interest rate.

Allotment details and terms

The newly approved debentures have a face value of ₹1,00,000 each. Unlike the previous tranche, these NCDs offer an interest rate of 1.00% per annum, payable on maturity along with the principal amount. The allotment will occur on the settlement date following the closure of the bidding window. The securities are secured, rated, and listed, issued via private placement to identified investors through an Electronic Book Provider (EBP).

Security and collateral structure

The new NCDs are secured by a first ranking pari-passu charge over all current and fixed assets of the company, both present and future. This includes receivables, intellectual property, and brand assets. Catalyst Trusteeship Limited has been appointed as the trustee for this issuance.

In the event of default in payment of interest or principal for more than three months, an additional interest of 2% per month will be levied on the outstanding principal amount for the period of default.

Context of recent fundraising

This approval comes immediately after Regency Fincorp allotted 50,000 NCDs aggregating ₹50 crore on September 22, 2026. That earlier tranche carried a coupon rate of 12% and a tenor of 15 months, with redemption scheduled for December 22, 2027. The earlier issue was subscribed by MAS Financial Services Limited, Best Capital Services Limited, and Mufin Green Finance Limited, with collateral primarily comprising MSME loan receivables (75%) and CashMySalary digital loan receivables (25%).

What the numbers show

The juxtaposition of the two tranches reveals a divergent funding strategy. The ₹50 crore tranche raised on September 22 carries a high cost of capital at 12%, indicating urgent liquidity needs or higher risk pricing for that specific investor base. In contrast, the newly approved ₹3.5 crore tranche at a mere 1% coupon suggests access to cheaper capital, possibly from strategic or related-party investors willing to accept lower returns for security or other non-financial benefits. The drastic difference in coupon rates (12% vs 1%) for similar secured instruments within a 24-hour window highlights distinct investor profiles or terms not fully disclosed in the standard public filings.

Regency Fincorp Limited has scheduled a board meeting for September 23, 2026. The directors will consider key corporate actions including debt issuance and equity restructuring.

The meeting agenda focuses on raising capital through multiple instruments. The company plans to issue listed, rated, secured, and redeemable non-convertible debentures via private placement. This requires appointing a debenture trustee to oversee the transaction.

Capital Structure Changes

The board will also review equity-related matters. These include issuing employee stock options to eligible staff subject to regulatory approvals. Additionally, the company proposes issuing equity shares, warrants, or compulsorily convertible debentures on a preferential basis.

To facilitate these issuances, the directors will consider increasing the authorized share capital. This move requires a consequential alteration of the Memorandum of Association.

Regulatory Compliance

The intimation was issued pursuant to Regulation 29 of Chapter IV and Regulation 50 of Chapter V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Abhimanyu, the Company Secretary and Compliance Officer, signed the notice dated September 19, 2026.