Regency Fincorp540175Preferential allotment

Board approves preferential issue of 1,42,66,412 shares and 4,75,46,030 warrants; authorised capital hike proposed

Board approved a preferential issue: 1,42,66,412 equity shares at INR 50.50/- each, totalling INR 72.05 crore.

By ScoutQuest · Fri 16 Oct 2026, 12:02 PM IST · 3 min read

312.15 CrTotal tentative amount under fund utilisation

Aggregate amount of warrant issueINR 2,40,10,74,515/-

Aggregate amount of equity share issueINR 72,04,53,806/-

Total tentative amount under fund utilisation 312.15 Cr: Aggregate amount of warrant issue INR 2,40,10,74,515/-, Aggregate amount of equity share issue INR 72,04,53,806/-.

Preferential Issue - Equity Shares: 1,42,66,412 equity shares at INR 50.50/- each, totalling INR 72.05 crore
Preferential Issue - Warrants: 4,75,46,030 warrants convertible at INR 50.50/- each, totalling INR 240.11 crore
Authorised Share Capital: proposed to be raised to Rs. 152 crore

Board meeting outcome of 16 October 2026

The board approved a set of proposals led by a fresh capital raise through a preferential issue. These take effect subject to the approval of the shareholders and such other approvals as may be necessary.

What the board approved

Preferential issue of 1,42,66,412 equity shares at INR 50.50/- per share, aggregating INR 72.05 crore, to promoters and non-promoters/public shareholders, for cash or consideration other than cash.
Preferential issue of 4,75,46,030 warrants convertible into an equal number of equity shares at INR 50.50/- per warrant, aggregating INR 240.11 crore, for cash.
Increase in the authorised share capital of the company to Rs. 152 crore, with a consequential amendment to Clause V of the Memorandum of Association.
Formulation and implementation of an employee stock option scheme, the Regency Fincorp Limited Employee Stock Option Scheme 2026, on the recommendation of the Nomination and Remuneration Committee.

Issue price and relevant date

The board approved 12 October 2026 as the relevant date for calculating the issue price and took note of the valuation report dated 15 October 2026 issued by a registered valuer. The price of INR 50.50/- per share is stated to include a premium over the face value.

Terms of the warrants

Each warrant is convertible into one equity share.
Conversion may 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.
The warrants are subject to adjustment if the company capitalises profits or reserves, carries out a demerger or realignment, a rights issue, or a consolidation, sub-division or reclassification of shares, or similar events.

How the funds are proposed to be used

The board gave a brief on utilisation covering acquisition of a company having a digital lending platform, acquisition of a company having a gold loan business, onward lending for MSME loans, and general corporate purposes. The tentative amounts shown against these heads add up to Rs. 312.15 Cr.

Other decisions

Infomerics Valuation and Rating Limited has been appointed as the monitoring agency for the issue of equity shares and warrants on a preferential basis.
The 2nd Extra Ordinary General Meeting for the financial year 2026-27 is to be held on Wednesday, 11 November 2026 at 1:00 P.M. at the registered office, and a practising company secretary has been approved as scrutinizer for the remote e-voting and ballot process.

How a retail investor might read this

A preferential issue adds new shares, and warrants can add more shares later if converted. Since the allotment is to specific named allottees, the shareholding pattern may change, and each existing holder's share of the company may change accordingly. The update also sets out where the company intends to use the money. How such an announcement is seen can depend on factors such as the issue price relative to the market price, the extent of dilution and progress on the stated acquisitions.

Also from Regency Fincorp