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Torrent Pharma to acquire JB Pharma from KKR at ₹25,689 cr valuation
In one of the largest pharma deals in the domestic market in recent years, Ahmedabad-based Torrent Pharmaceuticals will acquire a controlling stake in investment firm KKR-backed JB Chemicals and Pharmaceuticals (known as JB Pharma) at an equity valuation of ₹25,689 crore, which will be followed by the merger of the two entities.
The deal will be executed in two phases — acquisition of the 46.39 per cent stake held by KKR in JB Pharma at ₹1,600 per share, amounting to ₹11,917 crore, followed by a mandatory open offer to acquire up to 26 per cent of JB Pharma shares from public shareholders at ₹1,639.18 per share. 'In addition to the above, Torrent has also expressed its intent to acquire up to 2.8 per cent of equity shares from certain employees of JB Pharma at the same price per share as KKR,' the company said in a statement on Sunday.
The next step in the deal will be a merger between Torrent Pharma and JB Pharma through a scheme of arrangement, under which every shareholder holding 100 shares in JB Pharma will receive 51 shares of Torrent Pharma. The boards of directors of both companies have approved this arrangement.
KKR had acquired 54 per cent of JB Pharma in July 2020 from the promoters and founders, the Mody family, for approximately ₹3,100 crore (or ₹745 per share). It sold a part of its stake in March this year through block deals for ₹1,459.8 crore. KKR has earned more than five times on its investment, with around 36 per cent gross IRR.
For instance, Torrent Pharma has previously indicated plans to increase its medical representative (MR) strength by 23 per cent by the end of FY26, and the acquisition can aid in manpower augmentation.
Torrent Pharma holds a 3.74 per cent share in the domestic market (according to Pharmarack, May 2025), while JB Pharma commands a 1.12 per cent share.
Further, consolidation in key international markets is expected to offer greater scalability.
Samir Mehta, executive chairman of Torrent Pharma, said they want to build on JB Pharma's heritage and platform for the future. 'Torrent's deep India presence and JB Pharma's fast-growing India business, combined with the CDMO and international footprint, offer immense potential to scale both revenue and profitability. This strategic alignment furthers our goal of strengthening our presence in the Indian pharma market and builds a larger diversified global presence. Moreover, the CDMO platform provides a new long-term avenue of growth for Torrent.'
Torrent has previously taken the inorganic route to grow its business and enter newer segments — in 2013, it acquired Elder Pharma's India-branded business; followed by the dermaceutical business of Zyg Pharma in 2015 and the API plant of Glochem Industries in 2016. Among other major deals, it bought the India-branded business of Unichem in 2017. Its last major acquisition was of skin-care products from Curatio Healthcare in 2022.
Torrent Pharma is a highly domestic-focused company, drawing around 55 per cent of its consolidated revenues from the domestic formulations business. India sales grew by 13 per cent in FY25 to ₹6,393 crore. While the company has been outperforming industry growth in the domestic market, it is also planning to increase MR strength by 23 per cent by FY26-end.
Torrent has a strong presence in the cardiovascular, gastrointestinal and neurology segments. JB too has prominent cardiac and gastro brands like Cilacar, Metrogyl and Rantac. Torrent is also working on launching GLP-1 products as a day-one launch in FY26. Analysts expect a 15 per cent sales CAGR in domestic formulations for Torrent Pharma over FY25–27.
Gaurav Trehan, co-head of Asia Pacific and head of Asia Pacific private equity at KKR, and CEO of KKR India, said: 'JB Pharma's transformation under our stewardship is a testament to KKR's ability to scale high-quality companies.'
Nikhil Chopra, chief executive officer and whole-time director of JB Pharma, pointed out that over the past five years, the company has emerged as one of India's fastest-growing pharmaceutical players.
'We have built a strong foundation to deliver market-leading growth, as well as consistent improvement in profitability in the medium and long term. As we now enter a new chapter alongside Torrent Pharmaceuticals, we are confident that the combined strengths of our organisations will unlock greater opportunities to enhance healthcare access across our markets,' Chopra said.
JB Pharma posted 12 per cent revenue growth in FY25 to ₹3,918 crore, while its EBITDA rose 16 per cent to ₹1,087 crore, and PAT increased 19 per cent to ₹660 crore.
Notably, KKR Private equity has invested $2 billion in India in 2024 and recently invested $600 million in Manipal Group via its private credit arm.
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