Morepen Laboratories Limited — Important, 18-12-2024: Agreements

The Finance Committee of Morepen Laboratories has approved a working capital facility of ₹99 crore from Kotak Mahindra Bank. This facility comprises a working capital demand loan (WCDL) of ₹79 crore and a cash credit limit of ₹20 crore, both carrying an interest rate of 11% per annum. The tenure for the WCDL is up to 90 days, valid for 12 months, while the cash credit is repayable on demand over 12 months. The company has provided security by way of first charge on all present and future current and fixed assets to the lender. This facility could enhance operational liquidity, aiming to support the company's growth plans. Investors should approach this development with a positive outlook, considering the potential for improved working capital management.