In a landmark move set to reshape India’s pharmaceutical landscape, Torrent Pharmaceuticals has announced the acquisition of a controlling stake in JB Chemicals & Pharmaceuticals (JB Chem) in a deal valued at approximately ₹18,000 crore, including an open offer. This becomes the second-largest deal in the Indian pharma sector, only behind Sun Pharma’s $4 billion (₹24,000 crore) acquisition of Ranbaxy over a decade ago.
Key Highlights of the Deal:
- Torrent Pharma will first acquire a 46.4% stake in JB Chem from KKR (via Tau Investment Holdings) for ₹11,917 crore.
- This will be followed by an open offer for an additional 26% stake from public shareholders at ₹1,639 per share.
- The deal values JB Chem’s equity at ₹25,689 crore, while its market cap stands at around ₹28,000 crore.
- Torrent’s offer price to KKR is ₹1,600 per share, which is about 9% lower than JB Chem’s June 27 closing price of ₹1,800.
- The agreement also includes Torrent’s plan to acquire up to 2.8% equity from certain employees of JB Chem at ₹1,600/share.
Once completed, this acquisition will make Torrent Pharma the second most valued pharma company in India after Sun Pharma, with combined revenues exceeding ₹15,000 crore, placing it firmly among the top five pharmaceutical players in the country.
Future Merger and Share Swap Plan:
In the second phase, Torrent Pharma and JB Chem will be merged under a scheme of arrangement, wherein:
- JB Chem shareholders will receive 51 Torrent shares for every 100 shares held in JB Chem.
Background and Strategic Rationale:
- Private equity major KKR had acquired a 54% stake in JB Chem from the Mody family in 2019 for ₹3,100 crore (₹745/share).
- In March 2025, KKR offloaded about 7% via block deals and had been exploring a full exit due to valuation concerns from potential bidders.
- Torrent’s acquisition reflects strategic consolidation and a significant expansion in its domestic and international footprint in branded generics and specialty medicines.
Regulatory Approval:
The transaction and merger scheme are subject to necessary regulatory and statutory approvals.
With this acquisition, Torrent Pharma significantly boosts its product portfolio, distribution strength, and global reach—solidifying its position as a formidable force in the Indian and international pharmaceutical markets.
