Board approves preferential issue of 1,42,66,412 equity shares and 4,75,46,030 warrants
Board met on 16 Oct 2026, 10:00 AM to 11:30 AM.
By ScoutQuest · · 3 min read
- Preferential Issue Size
- 1,42,66,412 equity shares + 4,75,46,030 warrants at Rs. 50.50 each
- Authorised Share Capital
- proposed to rise to Rs. 152 crore, subject to shareholder nod
- Fund Utilisation
- up to Rs. 120.00 Cr for digital lending platform company; up to Rs. 150.00 Cr for gold loan business
What the board decided
The board of directors met on Friday, 16 October 2026 from 10:00 A.M. to 11:30 A.M. The main decisions were a preferential issue of equity shares and warrants convertible into equity shares, an increase in the company's authorised share capital, and the formulation of an employee stock option scheme. Monday, 12 October 2026 has been approved as the relevant date for the purpose of calculating the issue price, and the price itself is based on a valuation report dated 15 October 2026 from a Registered Valuer. The preferential issue and the capital increase are subject to the approval of shareholders.
The proposed preferential issue
- 1,42,66,412 equity shares, at an issue price of Rs. 50.50 per share, offered to promoters and non-promoters/public shareholders for cash or consideration other than cash, on a preferential basis.
- 4,75,46,030 warrants convertible into an equivalent number of equity shares, at Rs. 50.50 per warrant, offered to promoters and non-promoters/public shareholders.
- Each warrant is convertible 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, on payment of the full price of the warrant before exercise of the option.
- Infomerics Valuation and Rating Limited has been appointed as Monitoring Agency for the issue of equity shares and warrants on a preferential basis.
How the money is proposed to be used
The board gave a brief on the utilisation of the funds proposed to be raised from this issue. The largest earmarked outlays are acquisitions:
- Acquisition of a company having a digital lending platform: up to Rs. 120.00 Cr.
- Acquisition of a company having a gold loan business: up to Rs. 150.00 Cr.
- The remaining amount is indicated for onward lending purposes - MSME loans, and for general corporate purposes.
- Total proposed utilisation: Rs. 312.15 Cr.
Other items considered and approved
- The authorised share capital is proposed to be increased to Rs. 152 crore, with a corresponding alteration of Clause V of the Memorandum of Association, subject to the approval of members.
- Formulation and implementation of the Regency Fincorp Limited - Employee Stock Option Scheme 2026 (ESOP 2026), subject to shareholder approval and other regulatory/statutory approvals as may be necessary.
- Appointment of Mr. Devender Singh, Proprietor of M/s Devender Singh and Associates, a peer reviewed Practicing Company Secretary Firm, as scrutinizer for the remote e-voting and ballot process at the extraordinary general meeting.
- The 2nd Extra Ordinary General Meeting for the financial year 2026-27 will be held on Wednesday, 11 November 2026 at 1:00 P.M. at the registered office, and the calendar of events for it was approved.
What this means in simple terms
A preferential issue means fresh shares are proposed to be allotted to a chosen set of investors, including promoters, instead of to the public at large. Fresh shares increase the total number of shares in issue. Warrants work differently: they do not become shares right away. The holder has to pay the full price and choose to convert, within the stated window, and only then does the share count rise. The money proposed to be raised is largely earmarked for acquiring businesses in digital lending and gold loans, and for MSME lending. Both the preferential issue and the capital increase will be placed before shareholders, who will vote at the 11 November 2026 meeting.
Also from Regency Fincorp
Q2 & H1 FY27: AUM crosses ₹600 crore, H1 FY27 revenue surpasses full-year FY26
23 Oct 2026
Board meeting outcome: Q2/H1 results approved; 40,000 NCDs of INR 10,000 each for INR 40 crore on private placement
23 Oct 2026
Board outcome: H1 results approved; issuance of 40,000 secured NCDs of INR 40,00,00,000
23 Oct 2026
More numbers
- Equity shares proposed to be issued on preferential basis1,42,66,412
- Issue price per equity share (including premium)Rs. 50.50/-
- Warrants convertible into equity shares proposed4,75,46,030
- Total proposed utilisation of fundsRs. 312.15 Cr
- Proposed acquisition of a company having a digital lending platformUpto Rs.120.00 Cr
- Proposed acquisition of a company having a gold loan businessUpto Rs 150.00Cr
- Authorised share capital after proposed increaseRs. 152,00,00,000/-
- Period within which warrants may be converted18 months
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