Regency Fincorp Limited NCD Fundraising Disclosure

Fundraising Details

Total Fundraise: ₹35 crore aggregate through dual NCD transactions

Greenshoe Option: Additional ₹25 crore

First Transaction:

  • Amount: ₹10 crore
  • Counterparty: LC Venture Debt Fund
  • Execution Date: June 2, 2026
  • Status: Getting executed

Second Transaction:

  • Amount: ₹25 crore base issue size
  • Type: Listed NCD issue
  • Proposed Execution: Third week of June 2026
  • Status: Term sheet signed
  • Greenshoe Option: Additional ₹25 crore

Security Structure

The borrowing is secured through:

  • Charge over the company's performing loan receivables
  • Maintenance ratio: 1.25 times the outstanding amount
  • Personal guarantees from:
  • Mr. Gaurav Kumar, Promoter
  • Mr. Sarfaraz Mallick, Whole-time Director & CFO

Use of Proceeds

Proceeds will be utilized for:

  • General corporate purposes
  • Financing and supporting onward lending business operations
  • Expansion and growth of loan portfolio
  • In accordance with applicable RBI guidelines

Management Commentary

Mr. Sarfaraz Mallick, Whole-time Director & CFO, stated: "This fundraise marks a meaningful inflection point for Regency Fincorp. Over three decades, we have stayed true to our mission of extending financial access to underserved customers, microentrepreneurs, and MSMEs - reflecting the trust they have placed in our business, our team, and the work we have done over the years to build a responsible lending institution. These funds will allow us to reach more customers and grow our loan book in a measured and sustainable way. We remain committed to maintaining strong financial discipline as we scale."

Company Background

Regency Fincorp Limited is a Zirakpur-based RBI-registered NBFC focused on providing accessible and customer-centric financial solutions to retail customers, MSMEs, and emerging businesses.

Conditions and Caveats

The proposed transactions are subject to:

  • Execution of definitive agreements
  • Completion of due diligence
  • Regulatory approvals
  • Other customary conditions precedent

The term sheets are indicative and non-binding in nature except for specific agreed provisions.

Forward-Looking Statements

The document contains cautionary statements noting that forward-looking statements are subject to risks and uncertainties including regulatory changes, local political or economic developments, and other factors that could cause actual results to differ materially from those contemplated.