Regency Fincorp Approves Rs 75 Crore NCD Issuance

Issue Size: Rs 75 crore; Interest Rate: 12% per annum.

Reader Takeaway: Regency Fincorp secures long-term capital at 12% interest, though repayment obligations remain tied to receivables performance.

What just happened

Regency Fincorp Limited has officially cleared the proposal to issue 75,000 non-convertible debentures (NCDs) through a private placement route. Each debenture carries a face value of Rs 10,000, bringing the total corpus to Rs 75 crore. The company board approved this fundraising plan on October 31, 2026.

Why this matters

This move enables the company to mobilize capital for its operations with a defined debt structure. The 12% annual interest rate, payable monthly, provides a steady income stream for debenture holders. The structure is designed to align with SEBI listing regulations, ensuring adherence to standard debt security protocols.

Security and Payment Terms

The debentures are secured by a 1.25x security cover, which includes an exclusive charge on the company's present and future receivables. The repayment schedule mandates quarterly principal installments. Notably, the company has included a penalty clause: if payments are delayed beyond three months, an additional 2% interest will be levied on top of the base coupon rate.

Governance and Appointments

To oversee the issuance, the company has appointed Catalyst Trusteeship Limited as the trustee and Credora Partners Private Limited as the merchant banker. These firms will ensure compliance with the regulatory requirements governing the issuance of listed debt securities.

What to track next

Investors should monitor the subscription status of these NCDs and any subsequent updates regarding the effective date of issuance as the company proceeds with the private placement process.