Regency Fincorp Limited has approved the issuance of ₹50 crore in secured, rated, listed non-convertible debentures (NCDs) via private placement. The board meeting held on August 13, 2026, authorized the offering to raise capital for corporate purposes, with the instruments set to mature in 15 months.

The company will issue 50,000 units of NCDs, each with a face value of ₹10,000. The securities will be listed on the BSE Limited and are secured by a charge over assets with a security cover ratio of 1.25 times the outstanding amount.

Key Terms of the Issue

The interest on the NCDs is fixed at 13.50% per annum and will be paid monthly. Principal repayment is scheduled quarterly. 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.

What the Numbers Show

The decision to raise debt capital through a short-term instrument with a relatively high coupon rate suggests a focus on immediate liquidity needs rather than long-term capital structure optimization. The 1.25x security cover ratio indicates that the debt is backed by principal receivables, providing investors with collateral protection equivalent to 125% of the outstanding debt value.

The allotment of the NCDs will occur after the closure of bidding time via an Electronic Book Provider (EBP), in compliance with SEBI Master Circular No. HO/DDHS/DDHS-PoD/P/CIR/2025/0000000137 dated October 15, 2025. The disclosure was made pursuant to Regulation 30 read with Schedule III of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Regency Fincorp Limited has completed the allotment of ₹30 crore in 14% Listed, Secured, Rated, Redeemable Non-Convertible Debentures (NCDs) through a private placement. The Allotment Committee approved the issuance on August 11, 2026, securing capital from two identified investors: Ambium Finserve Private Limited and Wintwealth Debt Fund. This funding round provides the company with short-term liquidity at a fixed cost of debt, with proceeds secured against hypothecated assets.

The transaction was disclosed pursuant to Regulation 30 read with Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Additionally, the filing references SEBI Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. Abhimanyu, Company Secretary & Compliance Officer (M No. 49176), signed the disclosure on behalf of the company.

Instrument Details

The company allotted 30,000 debentures, each with a face value of ₹10,000. The securities are listed on BSE Limited and carry a coupon rate of 14% per annum. The tenor is set at 12 months and 5 days, with redemption scheduled for August 16, 2027.

Repayment and Security Structure

The repayment structure involves monthly interest payments with principal repayment split between the sixth month and maturity. Investors will receive 99% of the principal amount at the end of the sixth month from the date of allotment, with the remaining 1% paid at maturity. In the event of a default or delay in payment exceeding three months, a penalty interest of 2% per annum over the coupon rate will apply.

The NCDs are secured by a first-ranking exclusive charge over hypothecated assets. Regency Fincorp must maintain a minimum security cover ratio of 1.25x the outstanding amount at all times. At least 100% of this security cover must comprise principal loan receivables, ensuring that the underlying asset base fully backs the principal obligation.

Interest Payment Schedule

Interest payments are distributed monthly. The initial coupon period spans 32 days, followed by standard monthly intervals. The final coupon payment coincides with the partial principal repayment at maturity.