Eris Lifesciences Limited entered into Term Loan Agreement dated 27 September 2023 to avail the Rupee Term Loan facility amounting to INR 2,120,000,000 from HDFC Bank Limited. However, the consolidated net debt of the Company is not expected to be altered due to this development as an equivalent amount is expected to be paid by EOHPL to the Bank towards repayments of outstanding loans over the next fortnight. Purpose of entering into the agreement: The dermatology brands acquired from Glenmark by the wholly owned subsidiary- Eris Oaknet Healthcare Private Limited on January 17, 2023, were assigned in favour of the Holding Company Eris Lifesciences Ltd. on July 3, 2023, at their book value in pursuance of operational integration.

The consideration thereof needs to be paid by ELL to EOHPL. To facilitate that, ELL has availed term loan from HDFC. The funds received from HDFC pursuant to this loan will be used to make payment to EOHPL towards consideration for assignment of Brands.

EOHPL, reportedly, shall use the consideration so received for making full repayment of the loans previously availed by it from HDFC for acquiring the Brands. The Bank shall have a pari-passu charge along with Citi Bank N.A. on the trademarks acquired from Eris Oaknet Healthcare Private Limited.