Regency approves fund raise of Rs 312 cr via preferential issue of shares and warrants

Regency Fincorp has received an approval from the board of Rs 312.15 crore through the preferential issuance of equity shares and warrants convertible into equity shares, subject to shareholder and other applicable approvals.

The proposed issuance comprises 1,42,66,412 equity shares at Rs 50.50 per share with a face value of Rs10 per share, aggregating Rs 72.05 crore, and 4,75,46,030 convertible warrants at Rs 50.50 per warrant, aggregating Rs 240.11 crore. Each warrant will be convertible into one equity share within 18 months from the date of allotment, subject to applicable terms and conditions.

The proposed fundraise is intended to support the expansion through strategic acquisitions and strengthen its digital lending platform capabilities. The Company has earmarked up to Rs 120 crore for acquiring a company with a digital lending platform within 1 year and up to Rs 75 crore for acquiring a company with a gold loan business, within 6 months. A further Rs 32 crore is proposed to be deployed towards onward lending for MSME loans over two years, while Rs 10.15 crore is allocated for general corporate purposes over the same period.

Post the fund raise the share capital is expected to increase to Rs 152 crore in a phased manner. The proposed preferential issue includes 61 proposed allottees for equity shares and 56 proposed allottees for convertible warrants, across promoter and public categories. The proposed fundraise will not affect the promoters' shareholding, as fresh capital has been infused by the promoters.