Regency Fincorp Limited has announced plans to raise funds through two strategic Non-Convertible Debenture (NCD) transactions to support the growth of its lending business and strengthen its financial position.
The company is pursuing fundraising of Rs 35 crore through dual NCD transactions, along with an additional greenshoe option that could further enhance the total amount raised. The proceeds will be utilised for general corporate purposes and to support onward lending activities, including the expansion of its loan portfolio, in line with applicable regulatory guidelines.
As part of the fundraising initiative, the first transaction involves raising Rs 10 crore, while the company has also signed a term sheet for another listed NCD issue. The proposed issuance includes a base issue size of Rs 25 crore, with an option to raise additional funds through the greenshoe mechanism.
The borrowing is secured against the company’s performing loan receivables and is supported by personal guarantees from the company’s promoter and senior management. The structure reflects Regency Fincorp’s focus on maintaining prudent financial safeguards while pursuing growth opportunities.
Commenting on the development, Sarfaraz Mallick, Whole-time Director & CFO, Regency Fincorp Limited, said, “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, micro-entrepreneurs, and MSMEs. 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.”
The company stated that it remains focused on delivering accessible financial solutions to retail customers, MSMEs and emerging businesses while promoting financial inclusion through responsible lending practices. Regency Fincorp believes the proposed fundraising will provide additional capital to support future growth and strengthen its ability to serve a wider customer base.
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