Torrent Pharma to buy controlling stake in JB Chemicals from KKR for Rs 25,689 crore
Torrent Pharmaceuticals
, the flagship company of the Torrent Group, announced on Sunday that it will buy a controlling 46.39% stake in
JB Chemicals and Pharmaceuticals
from global investment firm
KKR
. The deal values JB Pharma at Rs 25,689 crore on a fully diluted basis. Moreover, after the acquisition, Torrent plans to merge JB Chemicals with itself.
ET had reported of the likely move a day earlier on June 28.
"The transaction marks a significant step in Torrent's ambition to create a future-ready, diversified
healthcare platform
combining a deep chronic segment heritage with emerging
international CDMO capabilities
," said an official memo.
According to Torrent, the transaction will be carried out in two phases.
In the first phase, Torrent will purchase the 46.39% equity stake from KKR through a Share Purchase Agreement for Rs 11,917 crore, paying Rs 1,600 per share. This will be followed by a mandatory open offer to acquire up to 26% of JB Pharma's shares from public shareholders at Rs 1,639.18 per share.
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Additionally, the has expressed its intention to buy up to 2.80% of shares from certain employees at the same price as KKR.
In the second phase, JB Pharma will be merged into Torrent Pharmaceuticals through a scheme of arrangement. As per the approved terms, shareholders holding 100 JB Pharma shares will receive 51 shares of Torrent.
"Torrent's deep India presence and JB Pharma's fast growing India business, combined with the CDMO and international footprint offers immense potential to scale both revenue and profitability. This strategic alignment furthers our goal of strengthening our presence in the Indian pharma market, and build a larger diversified global presence. Moreover, the CDMO platform provides a new long-term avenue of growth for Torrent," said Samir Mehta Executive chairman, Torrent.
Meanwhile, JB Pharma CEO Nikhil Chopra added that the company has built a strong foundation over the past five years and expressed confidence that joining Torrent will unlock new opportunities to enhance healthcare access across markets.
Strategically, the deal gives Torrent access to JB Pharma's leading brands in the chronic segment and opens up untapped therapeutic areas like ophthalmology.
It is also expected to create operational synergies, strengthen Torrent's market share in the Indian pharmaceutical market, and diversify its platform into contract development and manufacturing.
However, the move is yet to get the necessary approvals from the Securities and Exchange Board of India (SEBI), stock exchanges, the Competition Commission of India (CCI), the National Company Law Tribunal (NCLT), and other relevant authorities.
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