BSERegency Fincorp LtdMediumNeutral
Announced Thu, 4 Jun · 16:26 IST

Submission of Outcome of Board meeting for issuance of Listed rated secured Non Convertible Debenture and call Letter for unpaid warrant holders.

Ncd High Yield 12pctWarrants ConvertedFund Raising View source PDF

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Price reaction · full curve 14 horizons · vs prior close
+2.8%1-day move
₹33.00
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AI summary

Regency Fincorp's board approved issuing 50,000 secured, rated, listed Non-Convertible Debentures (NCDs) on a private placement basis at a face value of ₹10,000 each, aggregating to ₹50 crore (₹25 crore base issue + ₹25 crore green shoe option). The NCDs carry a coupon of 13.00% per annum, payable monthly, with a 30-month tenure and principal repayment of 30%/30%/40% at months 18, 24, and 30 respectively. The issue will be secured by 1.35x asset cover and listed on BSE, with Catalyst Trusteeship as debenture trustee and Horizon Management as merchant banker. Separately, the board approved calling the balance 75% amount from warrant holders who were allotted convertible share warrants on December 28, 2024, to enable conversion into fully paid-up equity shares.

Likely market impact

The ₹50 crore NCD raise will expand the company's debt base at a relatively high 13% cost, which could pressure profitability and increase interest obligations, though the secured nature and monthly coupon provide some predictability. The warrant call letter is a step toward equity dilution once holders pay the balance and convert warrants into shares, which could be mildly dilutive for existing shareholders.