Torrent Pharma Shares: Torrent Pharmaceuticals Ltd shares will be in focus after the company said that it has entered into definitive agreements with global investment firm KKR to acquire a majority stake in JB Chemicals & Pharmaceuticals (JB Pharma), in a transaction that values JB Pharma at Rs 25,689 crore on a fully diluted basis. Following the acquisition, JB Pharma will merge with Torrent, making the combined entity India鈥檚 second most valued pharmaceutical company, after Sun Pharma.
Torrent will first acquire a 46.39% stake in JB Pharma from Tau Investment Holdings Pte Ltd (a KKR entity) for Rs 11,917 crore, at Rs 1,600 per share. It will also acquire an additional 2.80% from JB Pharma employees at the same price, for Rs 719 crore.
Subsequently, Torrent will launch a mandatory open offer to acquire a further 26% stake from public shareholders at Rs 1,639.18 per share, totalling Rs 6,842.8 crore. This offer price is at a discount to JB Pharma鈥檚 closing share price of Rs 1,799.35 on Friday.
The deal, the second-largest in the Indian pharmaceutical sector after Sun Pharma acquired Ranbaxy in 2015, gives Torrent access to JB Pharma鈥檚 chronic care portfolio and opens up new therapeutic segments, including ophthalmology. The merger will also enhance Torrent鈥檚 position in India鈥檚 pharma market and expand its presence into contract development and manufacturing (CDMO), a segment with long-term growth potential.
鈥淛B Pharma鈥檚 India business, combined with our domestic strength and global footprint, provides a strong platform to scale revenue and profitability,鈥 said Samir Mehta, Executive Chairman, Torrent Pharmaceuticals. 鈥淭he CDMO platform also offers a promising long-term growth avenue.鈥
Gaurav Trehan, Co-Head of Asia Pacific and CEO of KKR India, added, 鈥淛B Pharma鈥檚 transformation under KKR showcases our ability to scale high-quality businesses. We are proud to have supported its growth journey.鈥
As part of the merger terms, JB Pharma shareholders will receive 51 shares of Torrent for every 100 shares held. The transaction is subject to regulatory approvals from SEBI, the CCI, NCLT, and others.
This strategic consolidation is expected to boost Torrent鈥檚 competitiveness in India, strengthen its international operations, and create significant operational synergies in the years ahead.