Torrent Pharma to acquire majority stake in JB Chemicals & Pharmaceuticals for Rs 19,500 crore – CNBC TV18

Torrent Pharmaceuticals announced on June 29 the acquisition of majority stake in J B Chemicals and Pharmaceuticals in a ₹19,500 crore deal to become India’s second most-valued pharma company. Torrent will acquire 46.39 per cent stake from the promoters for about ₹ 11,917 crore. It would additionally buy 2.80% from certain employees of JB Chemicals at the same acquisition price of ₹1,600 per share (about ₹719 crore).

Post this, it would make an open offer for buying 26% from open market, as per listing norms, at a price of ₹1,639.18 per share (totaling ₹6,842.8 crore).

This will be the second biggest deal in the pharma sector ever. “Torrent Pharmaceuticals Limited and global investment firm KKR today announced that Torrent has entered into definitive agreements to acquire controlling stake in JB Chemicals and Pharmaceuticals from KKR at an equity valuation of ₹

25,689 crore (on fully diluted basis), followed by a merger of the two entities,” a company statement said.

The transaction will be executed in two phases and marks one of the largest deals in the domestic pharma space. In the first phase of the transaction, Torrent will acquire a 46.39% stake in JB Chemicals from KKR for ₹11,917 crore. The company may also acquire up to 2.8% additional stake from certain employees at a price not exceeding ₹1,600 per share.

The transaction is a significant step in Torrent Pharma’s ambition to create a future-ready, diversified healthcare platform combining a deep chronic segment heritage with emerging international CDMO capabilities.