On 6th March 2025, Wanbury Limited, a leading pharmaceutical company with a robust presence in the global Active Pharmaceutical Ingredient (API) market and domestic branded formulations, made a significant stride in its financial journey by announcing the successful refinancing of a portion of its outstanding Non-Convertible Debentures (NCDs). The company’s strategic move comes as a key part of its overall financial strategy to improve cost-efficiency and optimize shareholder value.

This refinancing initiative involves the repurchase of the entire 21% Secured Non-Convertible Debenture issue, originally placed in July 2023 via private placement. The total value of the repurchased debt amounts to Rs. 95 crores, and the transaction was executed with NEO AIF and associates. The refinancing mechanism utilized is the restructuring of Rs. 175 crore of Tranche I debt from Emerging India Credit Opportunities Fund II, a notable entity associated with Investec Capital Services (India) Pvt. Ltd. The new agreement effectively reduces the interest rate on the debt to 12.5% per annum, thereby offering significant savings in interest payments.

The refinancing transaction affects Rs. 150 crores of existing outstanding debt, with Rs. 90 crores coming from NEO AIF & Associates and the remaining Rs. 60 crores from other lenders. This restructuring aims to provide Wanbury with a more flexible repayment structure, which includes a five-year repayment period and a moratorium period of nine months. The average life of the debt stands at 3.25 years, enhancing the company’s ability to manage its financial commitments efficiently.

Commenting on this pivotal development, Mr. Mohan Rayana, the Whole-time Director of Wanbury Ltd., expressed immense satisfaction with the outcome of the refinancing process. He emphasized that this step underscores the company’s dedication to ensuring financial stability and sustainable growth in the years ahead. Mr. Rayana also acknowledged that the substantial savings in interest costs reflect the company’s consistent performance, demonstrating its financial strength and stability.

This move is not only a reflection of Wanbury’s strategic financial planning, but also a significant milestone for its shareholders, as it will help optimize the company’s financial performance, enabling higher returns on investments. The refinancing process is seen as a testament to Wanbury’s focus on maintaining financial health and ensuring a competitive advantage in the industry.

Wanbury Limited, established in 1988, is a well-known entity in the pharmaceutical sector, listed on the National Stock Exchange of India Ltd (Code: WANBURY) and the BSE Ltd (Code: 524212). The company has developed a strong reputation for its presence in the global API market, with API products exported to over 50 countries and its formulations available across India. Wanbury operates two USFDA and EUGMP-approved manufacturing facilities in Tanuku (Andhra Pradesh) and Patalganga (Maharashtra), making it a significant player in the pharmaceutical manufacturing sector.

Wanbury’s API product portfolio includes key therapeutic areas such as Metformin, Sertraline, Tramadol, Diphenhydramine, Mefenamic acid, Paroxetine, among others, which are marketed globally. In addition, the company’s branded formulations cover a wide spectrum of therapeutic categories, including cough and cold solutions, gynecology, orthopedics, nutraceuticals, gastrointestinal, anti-inflammatory, and analgesics.

This refinancing initiative represents more than just a financial transaction; it embodies Wanbury’s long-term vision of creating a solid financial foundation while enhancing operational efficiencies. The company’s leadership believes that this strategic action will pave the way for sustained growth and profitability.

The successful refinancing also strengthens Wanbury’s commitment to its investors, who have shown continuous support for the company’s growth initiatives. As Wanbury Limited continues to innovate and adapt in an increasingly competitive environment, this move positions the company to capitalize on future opportunities, maintaining its industry standing and reinforcing the trust of its stakeholders.

In conclusion, Wanbury’s decision to refinance its outstanding debentures highlights its commitment to financial prudence and strategic growth. The reduced interest costs not only help in reducing financial strain but also create a more robust foundation for future business expansions, ensuring that Wanbury remains a key player in both the domestic and global pharmaceutical markets.

The Current active IPO is NAPS Global.

The Closed IPOs is Balaji Phosphates.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.

Join our Finance Saathi Telegram Channel for Regular Share Market, News & IPO Update.