Outcome of the Board meeting of Regency Fincorp Limited held on 04th June 2026
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Regency Fincorp Ltd's board, meeting on June 4, 2026, approved issuing 50,000 secured, rated, listed non-convertible debentures (NCDs) on a private placement basis, with a total value of ₹50 crore (face value ₹10,000 each). This includes a base issue of ₹25 crore and a green shoe option of another ₹25 crore. The NCDs carry a 13% annual coupon rate, paid monthly, with a 30-month tenure, and will be listed on BSE. Principal repayment is back-loaded: 30% at month 18, 30% at month 24, and 40% at month 30. The board also approved calling the remaining 75% balance from warrant holders allotted convertible warrants on December 28, 2024, which will lead to conversion into fully paid-up equity shares. Additionally, Catalyst Trusteeship Limited was appointed as debenture trustee and Horizon Management Private Limited as merchant banker for the NCD issuance.
The ₹50 crore NCD raise will expand the company's debt but provide fresh capital for its financial services business. The relatively high 13% coupon indicates aggressive fundraising, likely matched by high-yield lending. The warrant conversion will bring in additional equity capital but also expand the share base, leading to potential dilution for existing shareholders.