Regency Fincorp Limited allotted 50,000 Non-Convertible Debentures (NCDs) aggregating ₹50 crore on September 22, 2026. The securities carry a coupon rate of 12% and a tenor of 15 months.

The allotment was approved by the company's Allotment Committee in a meeting held on the same day. The instruments are listed, secured, rated, and redeemable, issued via private placement to identified investors. This move strengthens the company's debt capital structure with medium-term funding.

Allotment details and terms

The debentures have a face value of ₹10,000 each. The total issue size matches the allotted amount of ₹50 crore. The securities will be listed on BSE Limited. Redemption is scheduled as a bullet repayment on December 22, 2027.

Security and collateral structure

The NCDs are secured by a charge over the company's assets. The security cover is maintained at 1.25x the outstanding amount. The collateral pool consists primarily of loan receivables:

• At least 75% comprises secured MSME loan receivables.
• At least 25% comprises CashMySalary digital loan receivables.

In the event of default in payment of interest or principal for more than three months, an additional interest of 5% per annum over and above the coupon rate will be levied on the default amount.

Investor allocation

The entire issue was subscribed by three institutional investors. The allotment was distributed among MAS Financial Services Limited, Best Capital Services Limited, and Mufin Green Finance Limited. No special rights or privileges are attached to these instruments beyond standard debenture holder rights.

What the numbers show

The combination of a high coupon rate (12%) and a relatively short tenor (15 months) indicates a strategy to secure immediate liquidity for lending operations rather than long-term balance sheet expansion. The specific breakdown of collateral, heavily weighted towards MSME receivables (75%), suggests that the raised capital is likely deployed into this specific segment of the credit market, aligning the asset-liability duration and risk profile.

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.