Regency Fincorp Limited has received credit rating from Infomerics Valuation and Rating Limited for its proposed facilities worth ₹150.00 crore. The company announced this development on January 13, 2026, pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Credit Rating Details

Infomerics Valuation and Rating Limited has assigned ratings for the company's proposed facilities after reviewing the operational and financial performance for FY25 (Audited) and H1FY26 (Unaudited). The rating committee completed its review on January 12, 2026.

The rating IVR BBB- with positive outlook indicates that the securities are considered to have moderate degree of safety regarding timely servicing of financial obligations and carry moderate credit risk.

NCD Structure and Terms

The proposed Non-Convertible Debentures worth ₹100.00 crore will be issued in four tranches of ₹25.00 crore each. These NCDs are proposed to be listed on the stock exchange. The rating for NCDs represents a new assignment, while the term loan facility rating has been reaffirmed from the previous rating.

Rating Validity and Compliance Requirements

The credit rating is valid for one year from the date of the rating committee decision, specifically until January 11, 2027. Infomerics has established several compliance requirements for the company, including monthly submission of No Default Statements and quarterly performance results within six weeks of each calendar quarter close.

Rating Scale Context

According to Infomerics' long-term rating scale, the IVR BBB category represents securities with moderate degree of safety regarding timely servicing of financial obligations. The positive outlook modifier reflects a favorable comparative standing within this category. The rating agency reserves the right to undertake surveillance and review of the ratings from time to time, with at least one review annually.

Regency Fincorp Limited's board of directors has approved a significant fundraising initiative through the issuance of non-convertible debentures worth ₹25.00 crores. The decision was taken during a board meeting held on January 06, 2026, conducted via video conferencing from 04:00 PM to 06:30 PM.

Board Meeting Outcomes

The board meeting resulted in three key approvals that will facilitate the company's debt fundraising strategy:

Debenture Structure and Terms

The non-convertible debentures will be issued through private placement with specific structural features designed to attract institutional investors:

Payment Schedule and Security

The debentures feature a structured repayment mechanism with monthly interest payments and staggered principal repayment:

• Interest Payment: Monthly on outstanding facility
• Principal Repayment: 95.00% in the 6th month and 5.00% in the 12th month
• Security Cover: 1.25 times the outstanding debenture amount
• Default Interest: 2.00% per month on delayed payments beyond three months

The debentures will be secured with a security cover ratio of 1.25 times, where at least 125.00% of the security cover will comprise principal receivables. This security structure provides additional protection to debenture holders.

Regulatory Compliance

The issuance follows all regulatory requirements under SEBI Listing Regulations, specifically Regulation 30 read with Schedule III. The company has also complied with SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, for non-convertible debenture disclosures. The allotment will be completed after the closure of bidding time through an Electronic Book Provider, ensuring compliance with SEBI Master Circular dated October 15, 2025. The maturity date will be 12 months from the actual allotment date, providing clarity on the investment timeline for potential subscribers.