Mumbai: Pharmaceutical company Morepen Laboratories on 5 June said it has issued fresh capital of Rs103 crore to banks and financial institutions as part settlement under the corporate debt restructuring scheme (CDR).
The company had a total debt of Rs757 crore, of which lenders of Rs574 crore opted for one-time settlement (OTS) between 15-25% of their principal outstanding, Morepen said in a filing to the Bombay Stock Exchange.
“The company would be making arrangement for settlement with fixed deposit holders after this process is over,” Morepen Laboratories CMD Sushil Suri said.
Lenders for Rs161 crore had opted for restructuring of the outstanding debt wherein Rs72 crore will be serviceable at 8.25% a year, repayable in 7 years and Rs64 crore will be a zero-coupon instrument payable in the 9th and 10th year, the company added.
As part of the settlement, debt worth Rs103 crore has been converted into equity and optionally convertible preference shares (OCPS). The company allotted 75.17 lakh shares at Rs20 each, totalling Rs15.03 crore.
The company has also allotted OCPS amounting to Rs88.03 crore. The OCPS carrying a coupon rate of 0.01% would be redeemed or converted into equity shares at Sebi-determined price at the end of seven years.
The issuance of equity has resulted in a rise of 3.43% in the issued share capital.
Morepen said it proposed to settle the cash component of Rs98.5 crore as per the CDR OTS settlement within one month for which it has already tied up necessary funding with international investors.
Shares of the company were last trading 1.08% up at Rs18.75 on the BSE.