Regency Fincorp Limited has successfully raised Rs 65 crore through the issuance of 12% secured non-convertible debentures. The funds were raised via a private placement with a tenor of 18 months, maturing in April 2028. The debentures are backed by a diversified security pool of MSME and digital loan receivables, requiring a 125% maintenance cover.
Regency Fincorp Secures Rs 65 Crore Through NCD Issuance
Total raised amount: Rs 65 crore; Coupon rate: 12% per annum.
Reader Takeaway: This capital injection supports liquidity, but investors should track the 1.25x security cover and loan asset quality.
What just happened
Regency Fincorp Limited has completed a private placement of Non-Convertible Debentures (NCDs) amounting to Rs 65 crore. The Allotment Committee approved the issue on October 09, 2026. The company issued 65,000 NCDs, each with a face value of Rs 10,000, carrying an annual coupon rate of 12%. These securities are set to mature on April 09, 2028, with bullet repayment at maturity.
Why this matters
The capital raised strengthens the company’s liquidity position for its lending operations. The issuance attracted interest from entities including Manba Finance Limited, Sunrise Gilts and Securities Private Limited, LC Capital India Private Limited, and Aspero Markets Private Limited.
Security Structure
The NCDs are backed by the company's loan receivables, consisting of 75% MSME secured loans and 25% CashMySalary digital receivables. Regency Fincorp is mandated to maintain a security cover ratio of 125% at all times to protect bondholders. A default condition exists where payments delayed beyond three months will attract an additional 2% penalty interest over the base 12% coupon.
Risks to watch
Shareholders should closely monitor the company's asset quality, particularly the performance of its MSME and digital loan books. Failure to maintain the 125% security cover ratio would be a significant red flag regarding the company's financial discipline and debt management.