Global pharmaceutical and biotechnology company Wockhardt on Friday said that Guardian Finance, a non-bank financial company (NBFC) registered with the Reserve Bank of India, has wrongfully invoked a pledge of 20 lakh shares of the company. The lender invoked the pledge on July 24, 2023, prior to the disbursement of a sanctioned loan of Rs 57 crore, Wockhardt claimed.

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Some members of the promoter group had pledged certain shares of Wockhardt Limited with Guardian Finance to avail loan, the Mumbai-headquartered company said in a regulatory filing.

Further, Wockhardt said that there is no default in repayment or otherwise under the loan agreement executed between the lender and the borrowers. "How could there be a default on 24th July 2023 when no loan amount was disbursed," the company asked.

"We inform you that it has come to the notice of the management that Guardian Finance Private Limited. An NBFC registered with Reserve Bank of India, with whom some members of the promoter group of the company had entered into an agreement for availing loan against share facility and had accordingly created pledge on certain shares of Wockhardt Limited, has wrongfully invoked pledge on 20,00,000 such shares of on 24th July 2023, even before disbursal of any amount pursuant to the loan agreement and without giving any notice or intimation of any default under the loan or invocation of pledge to the borrowing entities," it said.

Further, Wockhardt said that Guardian Finance has only partly disbursed a portion of the total loan amount on July 26 and July 27, i.e., only after the invocation of pledge.

In view of the above, the concerned promoter entities have initiated various steps seeking clarification for such action and recovery of the wrongfully transferred shares, the company informed the stock exchanges.

It further said that the promoters of the company are confident that the shares wrongfully transferred by Guardian Finance will soon be reversed back to the original owners.

"Any dealings with these shares would be subject to litigations and prospective purchasers of these shares would be strictly dealt with in accordance with law and contract. The company will provide further updates as and when more definitive development happens on the matter," it noted.

First Published:Jul 28, 2023 12:44 PM IST