Morepen Laboratories Limited has announced that its Board of Directors has approved a financial agreement with Qatar National Bank for a loan facility totalling ₹50 crore. The arrangement, finalized on May 23, 2025, includes a working capital demand loan, a packing credit facility, and a post-shipment facility.
The agreement enables Morepen to access flexible short-term financing to support its operational needs. The working capital demand loan will carry an interest rate linked to the bank’s marginal cost of funds-based lending rate plus 1.25% per annum, with a tenure of up to 90 days and repayment on demand. The packing credit and post-shipment facilities will be available for up to 180 days, bearing an interest rate pegged to the six-month Secured Overnight Financing Rate plus 2.00% per annum, also repayable on demand.
The funding does not involve any shareholding or equity transaction with Qatar National Bank, and no rights such as board representation or capital structure restrictions have been granted to the lender. The agreement is strictly a debt arrangement and is not categorized as a related party transaction under SEBI regulations.
The facility is backed by a first-ranking pari passu charge on Morepen’s current assets, including raw materials, finished goods, work in progress, consumables, and receivables. It is further secured by a personal guarantee from Mr. Sushil Suri, the company’s Chairman and Managing Director.
As of May 23, 2025, Morepen Laboratories’ total outstanding debt—excluding vehicle loans and loans against fixed deposits—stood at ₹83.87 crore. This new facility enhances the company’s liquidity position to meet its ongoing business requirements.