Regency Fincorp Ltd Approves INR 50 Crore Non-Convertible Debenture Issuance and Calls Balance on Warrants

Regency Fincorp Ltd Approves INR 50 Crore Non-Convertible Debenture Issuance and Calls Balance on Warrants​

Regency Fincorp Limited, formerly known as Regency Investments Limited, announced the outcome of its Board of Directors meeting held on June 4, 2026. The board approved two key strategic actions: the issuance of secured non-convertible debentures (NCDs) and the decision to call the outstanding balance on convertible share warrants.

The Company sanctioned the private placement of 50,000 units of Secured, Rated, Listed, Non-Convertible Debentures. These NCDs have a face value of INR 10,000 each and were issued for a total amount of INR 50,00,00,000/- (Indian Rupees Fifty Crores Only).

The issuance is structured as follows:

• Base Issue: 25,000 units amounting to INR 25,00,00,000/-.
• Green Shoe Option: 25,000 units amounting to INR 25,00,00,000/-.

The NCDs are proposed for listing on BSE Limited and carry a tenure of 30 months from the actual date of allotment. Key financial terms include an interest rate offered at 13.00% per annum, with monthly interest payments scheduled. The repayment schedule for the principal amount is defined as: 30% at the end of the 18th month, 30% at the end of the 24th month, and the remaining 40% at the end of the 30th month from the deemed date of allotment. The instrument also includes a security covenant requiring a Security Cover Ratio of 1.35x against the outstanding debentures, supported by secured receivables.

Warrant Call Approved​

The Board meeting reviewed and approved the call for the remaining warrants held by certain investors. This action pertains to convertible share warrants that were allotted on December 28, 2024. The Company had previously received an amount equivalent to 25% of the Issue Price from the warrant holders. The board approved calling the balance 75% payment from all remaining warrant holders for the subsequent allotment of fully paid-up equity shares upon conversion.

Operational Appointments Made​

The Board meeting also formalized several critical appointments related to the NCD issuance:

• Debenture Trustee: Catalyst Trusteeship Limited was appointed as the debenture trustee for the 50,000 units of Secured, Rated, Listed, Non-Convertible Debentures.
• Merchant Banker: Horizon Management Private Limited was appointed as the Merchant Banker for the same NCD issuance.

Details regarding the NCD offering and the warrant call have been made public by the company.

Stock Price Movement​

Regency Fincorp Ltd saw its shares dip by 0.72% to settle at ₹33.00 on Thursday's close. The stock traded through a range during the day, moving between an intraday low of ₹32.81 and a high recorded at ₹34.40.