Morepen Laboratories Limited has announced the complete closure of its credit facility arrangement with Kotak Mahindra Bank Limited, marking a significant financial milestone for the pharmaceutical company. The facility, worth Rs 99,00,00,000/- (Rupees Ninety Nine Crore Only), was fully repaid effective March 2, 2026.

Credit Facility Structure

The credit arrangement with Kotak Mahindra Bank comprised two distinct components that provided comprehensive working capital support to the company.

The secured working capital demand loan and cash credit limit were initially established to support the company's operational requirements and working capital needs.

Repayment Completion

Kotak Mahindra Bank has officially confirmed that the aforementioned facilities were fully repaid as of March 2, 2026. This confirmation was communicated to the company on March 11, 2026, demonstrating the successful completion of the repayment process.

Following the complete repayment, the bank is now undertaking the following procedural steps:

• Issuing a No Dues Certificate to formally acknowledge the settlement
• Releasing the assets that were charged as security for the facilities

Regulatory Compliance

The company has fulfilled its disclosure obligations under Regulation 30 by informing both the National Stock Exchange of India Limited and BSE Limited about this development. This intimation follows a previous communication dated December 18, 2024, which had originally disclosed the credit facility arrangement.

The complete repayment of this substantial credit facility reflects Morepen Laboratories' financial management capabilities and its commitment to meeting debt obligations in a timely manner.

Morepen laboratories has secured a significant working capital boost through a ₹30 crore unsecured term loan facility from KEB Hana Bank. The company's Finance Committee approved this facility during its meeting held on March 10, 2026, which commenced at 6:00 p.m. and concluded at 6:45 p.m.

Loan Facility Details

The working capital term loan comes with competitive terms structured to support the company's operational requirements. The facility carries specific financial parameters designed for optimal cash flow management.

Agreement Parties and Structure

The loan agreement involves KEB Hana Bank as the lender and Morepen Laboratories Limited as the borrower. Mr. Sushil Suri, who serves as the company's Promoter, Chairman & Managing Director, has provided his personal guarantee to secure this unsecured facility. The transaction does not fall under related party transactions and involves no shareholding between the parties.

Current Debt Position

As of March 10, 2026, Morepen Laboratories maintains a clear outstanding position with KEB Hana Bank, with no existing loans from this particular lender. However, the company's total outstanding loan amount, excluding this new facility and vehicle loans along with their interest, stands at ₹164.62 crore.

Regulatory Compliance

The company has fulfilled its disclosure obligations under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure also complies with SEBI circular no. SEBI/HO/49/14/14(7) 2025 – CFD - POD2/I/3762/2026 dated January 30, 2026. The agreement was executed on March 10, 2026, and the company has informed both NSE and BSE about this development.

Purpose and Impact

The unsecured working capital term loan facility is specifically intended to support the company's working capital requirements. The 6-month moratorium period provides initial breathing room, while the subsequent 5 half-yearly installments offer a structured repayment schedule that aligns with business cash flow cycles.