Allotment of 5870150 equity shares pursuant to conversion of warrants
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Awaiting price reaction for this filing.
Regency Fincorp's board approved the allotment of 58.7 lakh equity shares at Rs. 22 each (including Rs. 12 premium) following the conversion of an equal number of warrants. The company received Rs. 9.68 crore as the balance 75% payment from allottees. These shares were allotted to 19 investors including individuals and entities such as LC Venture Debt Fund, Natures Heavens India, and several individual investors, all on a preferential basis. This is part of a larger issue where 4.33 crore warrants were originally allotted in December 2024, of which 2.18 crore warrants still remain pending conversion. Post-allotment, the paid-up capital stands at Rs. 69.46 crore comprising 6.94 crore equity shares of Rs. 10 each. All new allottees (except Natures Heavens India which held 6.08% pre-issue) had nil pre-issue equity holding, meaning this brings in entirely new shareholders who will collectively hold about 14.3% post-allotment.
This results in dilution for existing shareholders as the share count rises by about 9.2%. The entry of new non-promoter investors holding a combined ~14.3% stake broadens the shareholder base but may put short-term pressure on the stock depending on the market price versus the Rs. 22 issue price.