Torrent Pharma to acquire majority stake in KKR-backed JB Chemicals at ₹25,689 crore valuation — Details here
Gujarat-based pharmaceutical giant Torrent Pharma announced on Sunday, 29 June 2025, that it is in definitive agreements with global investment giant KKR to acquire a majority stake in JB Chemicals, according to an exchange filing.
The potential acquisition details show that the company plans to acquire J. B. Chemicals and Pharmaceuticals (JB Pharma) at an equity valuation of ₹ 25,689 crore on a fully diluted basis, which will be followed by a merger of the two companies.
JB Pharma's promoter company, Tau Investment Holdings, is a KKR-owned investment vehicle which the global giant uses to own a stake in the pharma major. Tau Investment is a legally distinct legal entity of KKR & Co. Inc.
Tau Investment currently holds a 47.84% stake in J. B. Chemicals and Pharmaceuticals, according to BSE data as on Sunday, 29 June 2025.
The deal is set to be carried out in several phases. In the first phase, Torrent Pharma will acquire a 46.39% stake through a share purchase agreement (SPA), which will total ₹ 11,917 crore at the rate of ₹ 1,600 per share.
After the first phase, the company will introduce a mandatory open offer to acquire up to 26% of JB Pharma shares from public stakeholders at an open offer price of ₹ 1,639.18 per share.
The acquiring company also plans to acquire another 2.80% stake in the company from certain employees holding a stake of JB Pharma at the same price per share as KKR selling its stake.
The company also announced its plans for a merger between Torrent and JB Pharma through a scheme of arrangement where every shareholder holding 100 shares in JB Pharma will receive 51 shares of Torrent Pharmaceuticals.
'We are pleased to have on board the JB Pharma heritage and build on the platform for the future. Torrent's deep India presence and JB Pharma's fast-growing India business, combined with the CDMO and international footprint offers immense potential to scale both revenue and profitability,' said Samir Mehta, the Executive Chairman of Torrent Pharma in the official statement.
JB Chemicals & Pharmaceuticals shares closed 2.72% higher at ₹ 1,799.35 after Friday's stock market session, compared to ₹ 1,751.75 in the previous market close.
Shares of the pharma company have given more than 398% returns on investment in the last five years. However, the stock has lost 0.03% in the last one-year period. On a year-to-date (YTD) basis, the shares are down 4.58% in 2025, but are currently trading 6.02% higher in the last one-month period.
Torrent Pharmaceuticals shares also closed with 3.68% gains on Friday's market at ₹ 3,344.40, compared to ₹ 3,225.70 in the previous stock market session last week.
Pharma major Torrent Pharmaceuticals shares have gained 181% in the last five years and are trading 21.35% higher in the last one-year period. The shares are trading 6.94% higher in the last five trading sessions.
Read all stories by Anubhav Mukherjee
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
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