Regency Fincorp540175Preferential allotment

Board approves preferential issue of 1,42,66,412 equity shares and 4,75,46,030 warrants

1,42,66,412 equity shares at Rs. 50.50 each = Rs. 72.05 crore.

By ScoutQuest · Fri 16 Oct 2026, 12:16 PM IST · 4 min read

Rs. 312.15 CrTotal tentative fund utilisation

Total amount of warrants convertible into equity sharesINR 2,40,10,74,515/-

Total amount of preferential issue of equity sharesINR 72,04,53,806/-

Total tentative fund utilisation Rs. 312.15 Cr: Total amount of warrants convertible into equity shares INR 2,40,10,74,515/-, Total amount of preferential issue of equity shares INR 72,04,53,806/-.

Equity shares approved: 1,42,66,412 equity shares at Rs. 50.50 each = Rs. 72.05 crore
Warrants approved: 4,75,46,030 warrants at Rs. 50.50 each = Rs. 240.11 crore
Fund use / authorised capital: Fund use Rs. 312.15 Cr; Authorised capital up to Rs. 152 crore

What the Board approved

The Board of Directors met on 16th October, 2026 and approved a preferential issue of equity shares and warrants convertible into equity shares, an increase in authorised share capital, an ESOP scheme, and the calling of an Extra-Ordinary General Meeting. The share issue and the warrant issue are both subject to the approval of shareholders.

The preferential issue of equity shares

Up to 1,42,66,412 equity shares of face value INR 10/- each
Issue price INR 50.50/- per share, including a premium of INR 40.50/-
Total amount INR 72.05 crore
The shares are proposed to be issued to promoters and non-promoters/public shareholders, for cash or consideration other than cash on a preferential basis.

Among the proposed allottees, promoter names in the list include Annaya Management Consultancy Private Limited with 8,62,693.00 shares, Regency Digitrade Investment Private Limited with 12,03,782.00 shares and Srishti Abrol with 19,801.00 shares. The largest public allottee named in the list is Max Bio biosciences Private Limited with 25,63,683.00 shares. The list totals 1,42,66,412.00 shares.

The warrants convertible into equity shares

4,75,46,030 warrants convertible into an equivalent number of equity shares of face value Rs 10/- each
Issue price INR 50.50/- per warrant, including a premium of INR 40.50/-
Total amount INR 240.11 crore, for cash consideration
Each warrant converts into one equity share, and conversion can be exercised at any time within 18 months from the date of allotment, in one or more tranches
The option to convert is available on payment of the full price of the warrant before exercise of the option
The warrants are subject to appropriate adjustment if, during the interim period, the company issues equity shares by way of capitalisation of profits or reserves, undertakes a demerger or realignment, a rights issue, or a consolidation, sub-division or reclassification of equity shares.

Promoter names in the warrant list include Gaurav Kumar with 35,64,356.00, Neha Abrol with 35,64,356.00 and Regency Digitrade Investment Private Limited with 39,60,396.00, each shown as the maximum number of equity shares to be allotted.

Increase in authorised share capital

The Board approved raising the authorised share capital from Rs. 95 crore divided into 95000000 equity shares of Rs.10/- each to Rs. 152 crore divided into 152000000 equity shares of Rs.10/- each, an increase of Rs. 60 crore. This requires an alteration of Clause V of the Memorandum of Association and the approval of shareholders.

How the company intends to use the funds

The Board gave a brief on utilisation of the funds proposed to be raised, which is stated as tentative:

Acquisition of a company having a digital lending platform: up to Rs.120.00 Cr, timeline 1 year
Acquisition of a company having a gold loan business: up to Rs 150.00Cr, timeline 6 months
Onward lending purposes, MSME loans: up to Rs 32.00 Cr, timeline 2 year
General corporate purposes: up to Rs. 10.15 Cr, timeline 2 years
Total: Rs. 312.15 Cr

Other decisions and next steps

The relevant date for calculating the issue price of the proposed preferential issue is Monday, 12th October, 2026, and the Board took note of a valuation report dated 15th October, 2026 from a registered valuer. Infomerics Valuation and Rating Limited has been appointed as the Monitoring Agency for the preferential issue of equity shares and warrants. The Board approved the formulation and implementation of the Regency Fincorp Limited - Employee Stock Option Scheme 2026, based on the recommendation of the Nomination and Remuneration Committee in its meeting held on 15th October, 2026, subject to shareholder approval and other regulatory or statutory approvals as may be necessary. Mr. Devender Singh, Proprietor of M/s Devender Singh and Associates, was approved as Scrutinizer for the remote e-voting and ballot process. The Notice and Calendar of Events for the 2nd Extra-Ordinary General Meeting for the Financial Year 2026-27 were approved, with the meeting to be held on Wednesday, 11th November, 2026 at 1:00 P.M. at the registered office.

What a retail investor can take from this

The main checkpoints are the issue price of INR 50.50/- per share and per warrant, the size of the two issues, the increase in authorised capital, and the stated end-use of the funds. Both the equity shares and the warrants are proposed to be issued and require shareholder approval before allotment; the warrants, once allotted, carry an 18-month window for conversion.

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