Pharma firm Wanbury refinances debt, cuts interest costs significantly
Wanbury Limited, a pharmaceutical company with global API and domestic formulations operations, announced today it has successfully refinanced ₹150 crore of outstanding debt at a reduced interest rate of 12.5 per cent.
The shares of Wanbury Limited were trading at ₹195.10 up by ₹6.81 or 3.62 per cent on the NSE today at 11.15 am.
The company has repurchased its entire issue of 21 per cent Secured Non-Convertible Debentures worth ₹95 crores originally placed in July 2023 with NEO AIF and associates. The refinancing was facilitated through a ₹175 crore debt facility from Emerging India Credit Opportunities Fund II, an associate of Investec Capital Services.
The new arrangement represents a significant reduction from the previous 21 per cent interest rate. The loan has a five-year repayment term with an average life of 3.25 years and includes a nine-month moratorium period.
Mohan Rayana, Whole-time Director of Wanbury, stated the refinancing reflects the company’s “commitment to financial stability and growth” and will result in “significant savings in interest cost.”
Wanbury operates two USFDA & EUGMP approved manufacturing facilities. The company exports APIs to more than 50 countries and has a pan-India presence in pharmaceutical formulations across multiple therapeutic categories.
