Mumbai: Torrent Pharmaceuticals Limited has announced a definitive agreement to acquire a controlling stake in J B Chemicals and Pharmaceuticals Ltd (JB Pharma) from global investment firm KKR in a strategic transaction valued at ₹25,689 crore (on a fully diluted basis).
The deal marks one of the largest pharma acquisitions in India this year and is aligned with Torrent Pharma’s ambition to become a diversified, global healthcare powerhouse.
The acquisition will unfold in two phases. Torrent Pharmaceuticals will first acquire a 46.39% stake in JB Pharma for a consideration of ₹11,917 crore at ₹1,600 per share through a Share Purchase Agreement (SPA). A mandatory open offer will follow to acquire up to 26% of public shareholding at ₹1,639.18 per share.
Torrent Pharmaceuticals has also shown intent to buy up to 2.80% equity from JB Pharma employees, potentially bringing its total stake to 75.19% before the merger process.
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Subsequently, JB Pharma will be merged with Torrent Pharmaceuticals through a Scheme of Arrangement approved by both companies’ boards. As per the scheme, shareholders of JB Pharma will receive 51 shares of Torrent for every 100 shares held.
Strategic Significance of JB Chemicals Acquisition by Torrent Pharmaceuticals
- Access to a High-Growth Chronic Portfolio: JB Pharma’s strong domestic brands, particularly in the chronic care segment, enhance Torrent’s position in the Indian pharma market.
- Expansion into New Therapeutic Areas: The acquisition opens access to underrepresented segments like ophthalmology.
- Global Scale and CDMO Platform Entry: JB Pharma’s contract development and manufacturing operations (CDMO) provide Torrent a scalable new revenue stream with long-term potential.
- Operational Synergies: Expected integration benefits across manufacturing, supply chain, R&D, and marketing.
- International Market Consolidation: A stronger global footprint, especially in emerging and regulated markets.
Samir Mehta, Executive Chairman of Torrent Pharma, commented: “We are excited to welcome JB Pharma into the Torrent family. This strategic combination strengthens our chronic segment in India and brings global CDMO capabilities into our portfolio. Together, we aim to deliver superior outcomes in both revenue growth and profitability.”
KKR’s Asia Pacific Co-Head Gaurav Trehan stated: “JB Pharma’s transformation under our investment is a testament to the power of strategic capital and world-class execution. We are proud to pass the baton to Torrent for the next phase of growth.”
Nikhil Chopra, CEO of JB Pharma, added: “We’ve built JB Pharma into one of India’s fastest-growing pharma companies. Partnering with Torrent marks an exciting new chapter with stronger innovation and healthcare access potential.”
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Transaction Structure and Approvals
The deal is subject to regulatory and statutory approvals from the SEBI, Stock Exchanges, CCI, and the NCLT, among others. Upon closure, the combined entity is expected to be a stronger contender in the Indian pharma landscape with diversified offerings and global market presence.
Advisory Team
- Torrent Pharmaceuticals: Financial advisors – Moelis & Co., NovaOne; Legal – Khaitan & Co.; Valuation – EY and Axis Capital
- KKR & JB Pharma: Financial – Kotak, Rothschild, Goldman Sachs; Legal – Shardul Amarchand Mangaldas, AZB & Partners; Fairness opinion – ICICI Securities
