Regency Fincorp raises ₹25 cr via NCDs at 13% coupon
The nano-cap NBFC is issuing secured debt with monthly payouts and amortisation, while June-quarter profit more than doubled to ₹7.03 crore.
— 6 earlier stories on Regency Fincorp Ltd. →What's new
- Board approved ₹25 cr secured NCDs with 13% coupon, monthly payout.
- Principal amortisation starts at 18 months, full redemption in 30 months.
- June-quarter net profit surged to ₹7.03 cr from ₹3.16 cr YoY.
Why this matters
Regency Fincorp is back in the NCD market with a ₹25 crore issue, its third this year. The 13% coupon, secured by a 1.35x cover, shows the cost of funds for a nano-cap NBFC. Yet the doubling of quarterly profit suggests the lending business is growing, justifying the continued debt raise.
What we're watching
- Whether the company maintains its NCD issuance pace.
- Loan book growth trajectory given 45% growth in Q1.
- Interest coverage and asset quality as debt piles up.
The full read
Regency Fincorp is raising another ₹25 crore through secured NCDs, its third debt tap in as many months. The 13% annual coupon, paid monthly, and amortisation beginning at 18 months with full redemption by month 30 are designed to attract yield-hungry retail investors. The issue is small relative to the company's ₹331 crore market cap but incremental to a borrowing base that has grown fast: a ₹50 crore issue closed in July and ₹15 crore in June. The June quarter numbers justify the repeat trips. Net profit jumped to ₹7.03 crore from ₹3.16 crore a year ago, signalling that the loan book, which grew 45% in Q1, is generating income. For a nano-cap NBFC with a debt/equity of 0.86, the extra ₹25 crore is manageable. What matters now is whether the asset quality holds as the book scales.
Questions answered
- Why is Regency raising more debt when it just raised ₹50 cr?
- The company is growing its loan book at 45%, requiring continuous funding. The ₹25 crore issue is incremental to the ₹50 crore raised in July and ₹15 crore in June.
- What does the 13% coupon signal about the company's risk profile?
- A 13% coupon is high for secured debt, reflecting Regency's nano-cap status and the NBFC's cost of funds. The 1.35x receivable cover mitigates some risk for investors.
- How does the ₹25 cr compare to Regency's market cap?
- The issue represents about 6.1% of its ₹331 crore market cap, making it quantitatively material but not transformative.
- What are the repayment terms of the NCDs?
- Principal amortisation begins after 18 months, with full redemption by 30 months from allotment. Coupon is paid monthly.
- Who are the key intermediaries for this issue?
- Catalyst Trusteeship is the debenture trustee, and Credora Partners is the merchant banker.
Regency Fincorp Ltd.
Latest quarter · Mar 2026
Leverage & growth
Story so far
All notes on REGENCY →- 20 Jul 2026 · 1:53 PM IST Regency Fincorp raises ₹25 cr via NCDs at 13% coupon
- today Regency Fincorp Q1 profit doubles, digital loan book takes shape
- today Regency Fincorp Q1 profit doubles to ₹7.03 cr
- 2d ago Regency Fincorp upgraded to IVR BBB, outlook cut to stable
- 7d ago Regency Fincorp raises ₹50 cr via listed NCDs, grows loan book 45%