Latest news with #Nicardia
Economic Times
2 days ago
- Business
- Economic Times
Amnish Aggarwal on Torrent Pharma plan to acquire JB Chemicals, Jio Finance surge & IT and shipping stocks
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads , Head-Research,, says Torrent Pharma 's plans to acquire JB Chemicals will be an expensive deal. The acquisition will strengthen Torrent's branded generics in India and overseas. It will also help in CDMO space. The deal is expected to increase margins in the long term. Synergies will likely emerge by the second half of acquisition is at around six-and-a-half times EV to sales and it is definitely not cheap, that is one. Secondly, if you look at the portfolio of Torrent and the portfolio of JB Chemicals, whether it is medicines like Rantac, Nicardia or some of the other plays which JB Chemicals offers, in the domestic markets, it is definitely a complimentary deal and it offers them more branded generics in India and overseas and strengthens them in the CDMO need to pay out Rs 12,000 crore and do not have that kind of money in the balance sheet. Plus, it is slightly complicated because they are acquiring some stake and making an open offer and then the merger is there. In the longer term, there is a scope to increase margins. In the longer term, it will play out to the benefit of Torrent Pharma. But yes, in the near term, I do not think there is anything which is very meaningful on the table in terms of any immediate traction to the stock the longer term, definitely, Torrent Pharma will gain from it, may not be in FIY26, because the debt will come on the balance sheet, but as you said, by FY27 second half, by when they want to get rid of the debt, the synergies will also start coming in and might push their margins up by 2% to 3%. So, in the longer term, it will add value to Torrent is very difficult to say because it is a very volatile stock. Earlier from close to Rs 200-220, it went all the way to Rs 340-350. In terms of business, there are not many material things happening. They are gradually building up and might be looking at mutual funds. Then they are looking at lending. But on a very fundamental basis, I would not be able to give any reasons why the stock price has shown an upward IT services, the commentaries are not likely to be very different from what we have seen in the past couple of quarters. There might be solitary cases here or there where they might give some indication of recovery. But what we are learning as of now is that there is no big change in commentary. In the near to medium term, at least for the next couple of quarters, we will not see any meaningful uptake it will depend upon various segments. Some of the companies in BFSI or AI-related, might see some sort of stability, but for ER&D and companies which are catering to auto related stuff in Europe, we will continue to see pressure building up. There is no big change there. Some of the niches will continue to do well, but in terms of commentary, we are not expecting anything drastic as far as IT services are acquisition is a positive because for Indian companies which are on the shipping side, whether commercial or defence, first of all, there is a huge runway of growth as we are not building enough ships – be it commercial ships or those for defence is also positive for a company like say Mazagon Dock which is into submarines and all sorts of ships. As far as the Sri Lankan acquisition is concerned, it will be primarily for the commercial wing because it would not be possible to extend the defence wing over all these shipping companies could be looking at expanding their production, particularly the commercial ship building side because India hardly makes anything and that too above the 10,000 DWT weight. I am not sure as of now if that particular shipyard has the capacity to build larger ships of more than 10,000 DWT or 20,000 DWT but if that happens, it will give Mazagon Dock a lot of fuel to accelerate growth because India wants to develop its ship building industry in a big it remains quite an expensive stock. It has run up quite sharply after the brief reaction which happened towards the Q3 of last year and from here on, in all these names, one will have to take a very long-term viewpoint of three to five years at least to make any very sizable returns.
Time of India
2 days ago
- Business
- Time of India
Amnish Aggarwal on Torrent Pharma plan to acquire JB Chemicals, Jio Finance surge & IT and shipping stocks
Live Events You Might Also Like: Rakshit Ranjan on sectors to focus on to geopolitically risk-proof your portfolio You Might Also Like: Torrent Pharma shares surge 4% after agreeing to acquire JB Chemicals for Rs 11,900 crore (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel , Head-Research,, says Torrent Pharma 's plans to acquire JB Chemicals will be an expensive deal. The acquisition will strengthen Torrent's branded generics in India and overseas. It will also help in CDMO space. The deal is expected to increase margins in the long term. Synergies will likely emerge by the second half of acquisition is at around six-and-a-half times EV to sales and it is definitely not cheap, that is one. Secondly, if you look at the portfolio of Torrent and the portfolio of JB Chemicals, whether it is medicines like Rantac, Nicardia or some of the other plays which JB Chemicals offers, in the domestic markets, it is definitely a complimentary deal and it offers them more branded generics in India and overseas and strengthens them in the CDMO need to pay out Rs 12,000 crore and do not have that kind of money in the balance sheet. Plus, it is slightly complicated because they are acquiring some stake and making an open offer and then the merger is there. In the longer term, there is a scope to increase margins. In the longer term, it will play out to the benefit of Torrent Pharma. But yes, in the near term, I do not think there is anything which is very meaningful on the table in terms of any immediate traction to the stock the longer term, definitely, Torrent Pharma will gain from it, may not be in FIY26, because the debt will come on the balance sheet, but as you said, by FY27 second half, by when they want to get rid of the debt, the synergies will also start coming in and might push their margins up by 2% to 3%. So, in the longer term, it will add value to Torrent is very difficult to say because it is a very volatile stock. Earlier from close to Rs 200-220, it went all the way to Rs 340-350. In terms of business, there are not many material things happening. They are gradually building up and might be looking at mutual funds. Then they are looking at lending. But on a very fundamental basis, I would not be able to give any reasons why the stock price has shown an upward IT services, the commentaries are not likely to be very different from what we have seen in the past couple of quarters. There might be solitary cases here or there where they might give some indication of recovery. But what we are learning as of now is that there is no big change in commentary. In the near to medium term, at least for the next couple of quarters, we will not see any meaningful uptake it will depend upon various segments. Some of the companies in BFSI or AI-related, might see some sort of stability, but for ER&D and companies which are catering to auto related stuff in Europe, we will continue to see pressure building up. There is no big change there. Some of the niches will continue to do well, but in terms of commentary, we are not expecting anything drastic as far as IT services are acquisition is a positive because for Indian companies which are on the shipping side, whether commercial or defence, first of all, there is a huge runway of growth as we are not building enough ships – be it commercial ships or those for defence is also positive for a company like say Mazagon Dock which is into submarines and all sorts of ships. As far as the Sri Lankan acquisition is concerned, it will be primarily for the commercial wing because it would not be possible to extend the defence wing over all these shipping companies could be looking at expanding their production, particularly the commercial ship building side because India hardly makes anything and that too above the 10,000 DWT weight. I am not sure as of now if that particular shipyard has the capacity to build larger ships of more than 10,000 DWT or 20,000 DWT but if that happens, it will give Mazagon Dock a lot of fuel to accelerate growth because India wants to develop its ship building industry in a big it remains quite an expensive stock. It has run up quite sharply after the brief reaction which happened towards the Q3 of last year and from here on, in all these names, one will have to take a very long-term viewpoint of three to five years at least to make any very sizable returns.
Time of India
4 days ago
- Business
- Time of India
Torrent in Advanced Talks to Stitch Up JB Chemicals Buy
Torrent Pharma is in advanced discussions with private equity group KKR to buy JB Chemicals and Pharmaceuticals , almost 10 months after their initial discussions fell through, said multiple people aware of the matter. KKR, the controlling shareholder, owns 47.84% of the company via investment vehicle TAU Investment. The transaction will include buying out KKR from its five-year-old investment. In July 2020, KKR acquired around 54% of JB Chemicals from its promoters and founders, the Mody family, for approximately ₹3,100 crore, translating to ₹745 per share. The deal, if it takes place, will trigger an open offer for an additional 26% of the company. If fully successful, Torrent could end up owning 73.84% of the firm. At current prices, that would amount to ₹20,734.61 crore ($2.4 billion), making it Torrent's largest buyout . KKR's stake alone is worth ₹13,433.69 crore. This will take Torrent to fifth position in the Indian market from seventh now with combined sales of ₹8,662 crore in the domestic market. A formal announcement is expected in the coming weeks, said one of the persons cited. The JB Chemicals stock closed Friday at ₹1,799.35, up 3%, for a market value of ₹28,080.46 crore. The stock hit a 52-week high on August 16, 2024, and has dropped 4.58% in the year to date. JB Chemicals is a turnaround story backed by a string of deals and a push to some of its own brands such as Nicardia (hypertension), Rantac (antiulcer), Cilacar and Metrogyl (antibacterial). For Torrent, these will come handy in the hyper-competitive branded generic market in India, more so because these products have a strong reputation with doctors. JB's leading eight brands account for half of total sales of ₹3,900 crore. Additionally, a deal will allow Torrent to make an entry into the Contract Development and Manufacturing Organisation (CDMO) business via JB's high-quality alliances with multinational companies for cough lozenges. Live Events Sources indicate that Torrent Pharma may also look at merging JB Chemicals with itself in the near term with the aim to derive the benefits of synergies. Torrent, Alkem and EQT were in separate negotiations with KKR last year, when the US buyout fund had launched a formal sale process, but that failed due to a lack of agreement on valuation. The talks with Torrent are said to have resumed bilaterally in recent weeks. KKR declined to comment. Torrent didn't respond to queries. Ahmedabad-headquartered Torrent is also holding financing negotiations with HSBC, Standard Chartered Bank and Barclays to arrange financing of $1.6 billion. These three had been lined up as the financing banks last year as well, and have sought 'refreshed approvals on the bond structure,' said one of the persons cited. The rupee bond facility is being raised to fund the equity requirement for the transaction and is likely to be backed by promoter group entities or select downstream cash flows, the person said. HSBC didn't respond to queries. Standard Chartered and Barclays declined to comment. Moneycontrol was the first to report that Torrent had revived its JB Chemicals buyout plans on Friday evening. Earlier this March, KKR sold a little above 5% of JB in the open market via a block deal and raised ₹1,459 crore. 'Unlike Max Healthcare, where KKR sold significant chunks of the company, in JB Chemicals selling close to 50% would have been difficult,' said an industry executive on condition of anonymity.
Time of India
5 days ago
- Business
- Time of India
Torrent Pharma closes in on JB Chem likely for $2.4 bn buyout, eyes $1.6 billion financing
Torrent Pharma is in advanced discussions with private equity group KKR to buy JB Chemicals and Pharmaceuticals, almost 10 months after their initial discussions fell through, said multiple people aware. KKR the controlling shareholder owns 47.84% of the company via its investment vehicle TAU Investment. The transaction will include buying out KKR from its 5 year old investment. In July 2020, KKR acquired around 54 percent of JB Pharma from its promoters and founders, the Mody family, for approximately Rs 3,100 crore translating to Rs 745 per share. It will also trigger an open offer for an additional 26% of the company. If fully successful, Torrent could end up owning 73.84 per cent of the company. At current price, that could lead to a Rs 20,734.61 crore buyout for Torrent – its largest so far. Acquisition of KKR's stake alone would translate to a Rs 13,433.69 crore transaction. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Punjab Mosquito-Free Nights: Residents Share Unexpected Secret Mosquito Eliminator Read More Undo A formal announcement is expected in coming weeks, one of the sources mentioned above added. JB Chemicals closed Friday at Rs 1799.35/share, up 3% from the previous day's closing. Its current market value is Rs 28,080.46 crore. The JB Chemical stock had touched a 52-week high on 16th August 2024, and has dropped 4.58% year to date. Live Events JB Pharma has been a turnaround story backed by a string of deals and a push to some of its own brands like Nicardia (hypertension), Rantac (antiulcer), Cilacar and Metrogyl (antibacterial). For Torrent, these hit brands will come handy in the hyper competitive branded generic market in India, more so because these products have a strong reputation with the doctors. Of the total sales of roughly Rs 3900 crore, JB leading eight brands account for half. Additionally, Torrent will make an entry into the CDMO business via JB Pharma's high quality alliances with multinational companies for cough lozenges. Torrent, Alkem and EQT were in separate negotiations with KKR last year, when the US buyout fund had launched a formal sale process but that failed due to valuation mismatch. The talks are believed to have resumed bilaterally in recent weeks. KKR declined to comment. Mails sent to Torrent Pharma did not generate a response till press time. Ahmedabad headquartered Torrent is also holding financing negotiations with HSBC, Standard Chartered Bnak and Barclays to arrange $1.6 billion rupee financing. The three were the financing banks last year as well, so they have sought 'refreshed approvals on the bond structure.' The INR bond facility is being raised to fund the equity requirement for the transaction and is likely to be backed by promoter group entities or select downstream cash flows,' one of the people said. Mails to HSBC remained unanswered as of press time Friday, while Standard Chartered and Barclays spokesperson declined to comment. Moneycontrol was the 1st to report that Torrent has revived its JB Chemicals buyout plans on Friday evening. Earlier this March, KKR sold a little above 5% stake in the open market via a block deal and raised Rs 1459 crore. 'Unlike Max Healthcare, where KKR sold significant chunks of the company, in JB Chemicals selling close to 50% would have been difficult. Torrent has always been keen but last time there was a difference in price expectations and the stock had significantly run up,' said an industry executive on condition of anonymity. In 2023, Torrent was aggressively pursuing a $7 billion buyout of Cipla that got aborted following differences within the promoter family. It also made a billion dollar play to take over Biogaran, France's largest generics company, from Servier last year, before the French government intervened to block the divestment. Torrent's current market capitalisation is Rs 1,13,184.61 crore with the promoters, the Mehta family, owning 68.21% of the company. TURNAROUND STORY Under CEO Nikhil Chopra, who was brought in by KKR from Cipla, JB Pharma has seen a significant ramp up in its sales and profitability. For the financial year 2024-25, JB Pharma recorded a revenue of Rs 3,918 crore compared to Rs 3,484 crore in FY23-24, registering 12 percent growth. JB Pharma has also aligned with Novartis to sell its new generation cardiovascular drug Izirize (inclisiran), demonstrating its deeper and innovative drugs presence in the cardiology market. In a recent interview with ET, Torrent Pharma MD designate Aman Mehta told ET recently that he is aiming to be in the top three slot in the Indian market in three to five years. "As far as the India market is concerned, we have reached the position today through mainly inorganic growth over the last decade." He added 'Our rank was much lower 10 years ago than it is today. That's certainly a big positive that has happened in the sense that from where we were to where we are, we are in a much stronger position to invest further and even grow the business from here.' While hinting at big buyouts, Mehta said, "I would say that from here onwards, acquisitions will continue to remain a priority. And the top three in the Indian market is something that we have our eyes on. Organically it may be difficult to achieve in the near term. But certainly through inorganic growth it seems quite possible, and may be in the next couple of years, if something materializes, that certainly is going to be part of our ambition."
