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India Today
2 days ago
- Business
- India Today
Explained: Why JB Chemicals shares plunged over 6% today
Shares of JB Chemicals and Pharmaceuticals fell sharply on Monday morning, dropping over 6% to Rs. 1,691.80 on the Bombay Stock Exchange (BSE) around 10:10 market reaction came swiftly after Torrent Pharmaceuticals announced it will acquire a controlling 46.39% stake in JB Pharma from global investment firm KKR, with plans to subsequently merge the two a joint statement released on Sunday, Torrent Pharma, JB Chemicals, and KKR said the deal implies a total equity valuation of Rs. 25,689 crore (approximately $3.01 billion) for JB Pharma on a fully diluted basis. This marks one of the biggest consolidation moves in India's pharma sector this Under the agreement, Torrent will first purchase JB Pharma shares worth Rs. 11,917 crore from KKR. Following this, it will launch a mandatory open offer to acquire up to an additional 26% stake from public shareholders at Rs. 1,639.18 per share. That open offer price is below JB Pharma's last closing price, which partly explains Monday's also aims to acquire an additional 2.8% from certain JB Pharma employees, and eventually merge the two companies under a proposed scheme of arrangement. As per the merger terms, JB Pharma shareholders will receive 51 Torrent shares for every 100 JB shares Executive Chairman Samir Mehta said the acquisition and merger will help the company deepen its presence in the Indian market and expand its global footprint. 'This strategic alignment furthers our goal of strengthening our presence in the Indian pharma market and building a larger diversified global presence,' he Pharma's CEO Nikhil Chopra echoed the optimism, stating, 'We are confident that the combined strengths of our organisations will unlock greater opportunities to enhance healthcare access across our markets.'KKR, which bought a controlling stake in JB Pharma in 2020 at Rs. 745 per share, is reportedly exiting the investment with a fivefold return, translating to a 36% gross internal rate of return in rupee Pharmaceuticals has been steadily growing its portfolio of chronic and speciality drugs. JB Pharma, known for gastrointestinal and cardiovascular medicines, has also reported strong recent earnings, making this consolidation a significant reshaping of India's pharma landscape.- Ends
The Hindu
2 days ago
- Business
- The Hindu
Torrent Pharma to acquire J.B. Chemicals & Pharma for equity valuation of ₹25,689 crore
Torrent Pharmaceuticals Ltd has entered into definitive agreements to acquire controlling stake in J. B. 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. The transaction will be executed in 2 phases. In the first phase Torrent will acquire 46.39% equity stake (on a fully diluted basis) through a Share Purchase Agreement for of ₹11,917 crore (₹ 1,600 per share) followed by a mandatory open offer to acquire up to 26% of JB Pharma shares from public shareholders at an open offer price of ₹1,639.18 per share. In addition to the above, Torrent has also expressed its intent to acquire up to 2.80% of equity shares from certain employees of JB Pharma at the same price per share as KKR. In the second phase Torrent and JB Pharma will merge through a scheme of arrangement. As per the approval given by the Board of Directors of both companies, upon merger of JB Pharma with Torrent, every shareholder holding 100 shares in JB Pharma shall receive 51 shares of Torrent. Samir Mehta Executive chairman, Torrent said, '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.' 'This strategic alignment furthers our goal of strengthening our presence in the Indian pharma market, and build a larger diversified global presence. Moreover, the CDMO platform provides a new long-term avenue of growth for Torrent,' he added. Gaurav Trehan, Co-Head of Asia Pacific and Head of Asia Pacific Private Equity, KKR, and CEO of KKR India, said, 'We had collaborated with JB Pharma's management team, led by Nikhil Chopra, to bring the breadth of KKR's global experience and operational expertise to support the company's organic and inorganic growth, and help JB Pharma become one of India's fastest growing branded pharmaceutical companies.' Nikhil Chopra, Chief Executive Officer and Whole Time Director, JB Pharma said,'Over the past five years, JB Pharma has emerged as one of India's fastest growing pharmaceutical players, owing to KKR's strategic guidance, stewardship of our independent directors and a focused strategic and executional excellence by the management team.' 'We have built a strong foundation to deliver market-leading growth, as well as consistent improvement in profitability in the medium and long term. As we now enter a new chapter alongside Torrent Pharmaceuticals, we are confident that the combined strengths of our organisations will unlock greater opportunities to enhance healthcare access across our markets,' he added.
Zawya
2 days ago
- Business
- Zawya
India's Torrent Pharma to acquire controlling stake in JB Chem and Pharma
India's Torrent Pharmaceuticals said on Sunday it will acquire a 46.39% controlling stake in smaller peer JB Chemicals and Pharmaceuticals from New York-based investment firm KKR, and plans to merge the two drugmakers. The transaction, announced in a joint statement released by the three companies, implies a total equity valuation of 256.89 billion rupees ($3.01 billion) for JB Pharma on a fully diluted basis. "This strategic alignment furthers our goal of strengthening our presence in the Indian pharma market, and building a larger diversified global presence," Torrent Executive Chairman Samir Mehta said in the statement. Under the terms of the deal, Torrent will initially acquire an equity stake in JB Pharma from KKR for 119.17 billion rupees. Following this, Torrent will launch a mandatory open offer to acquire up to an additional 26% of JB Pharma shares from public shareholders at 1,639.18 rupees per share. Torrent also signaled its intent to acquire up to 2.80% of equity shares from certain JB Pharma employees, the company said. The second phase of the transaction involves a merger of Torrent and JB Pharma through a scheme of arrangement. Upon merger, JB Pharma shareholders will receive 51 Torrent shares for every 100 JB Pharma shares held. KKR also confirmed the deal in a separate statement. "We are confident that the combined strengths of our organizations will unlock greater opportunities to enhance healthcare access across our markets," said JB Pharma CEO Nikhil Chopra. India is Torrent's biggest market by revenue, where it competes with peers such as Mankind Pharma. Torrent offers drugs used to treat cancer, infections and diabetes, and has benefited from steady demand for its specialty and chronic illness drugs. For the January-March quarter, its consolidated net profit was up 11% from a year earlier. JB Chemicals and Pharmaceuticals, meanwhile, reported higher fourth-quarter profit in May. Along with the steady market for its gastrointestinal medicines, Metrogyl and Sporlac, the company also benefitted from demand for its drugs that treat chronic conditions such as hypertension. ($1 = 85.4400 Indian rupees) (Reporting by Abu Sultan and Mrinmay Dey in Bengaluru; Editing by Joe Bavier)
Business Recorder
2 days ago
- Business
- Business Recorder
India's Torrent Pharma to acquire controlling stake in JB Chem and Pharma
NEW DELHI: India's Torrent Pharmaceuticals said on Sunday it will acquire a 46.39% controlling stake in smaller peer JB Chemicals and Pharmaceuticals from New York-based investment firm KKR, and plans to merge the two drugmakers. The transaction, announced in a joint statement released by the three companies, implies a total equity valuation of 256.89 billion rupees ($3.01 billion) for JB Pharma on a fully diluted basis. 'This strategic alignment furthers our goal of strengthening our presence in the Indian pharma market, and building a larger diversified global presence,' Torrent Executive Chairman Samir Mehta said in the statement. Under the terms of the deal, Torrent will initially acquire an equity stake in JB Pharma from KKR for 119.17 billion rupees. Following this, Torrent will launch a mandatory open offer to acquire up to an additional 26% of JB Pharma shares from public shareholders at 1,639.18 rupees per share. Torrent also signaled its intent to acquire up to 2.80% of equity shares from certain JB Pharma employees, the company said. The second phase of the transaction involves a merger of Torrent and JB Pharma through a scheme of arrangement. Upon merger, JB Pharma shareholders will receive 51 Torrent shares for every 100 JB Pharma shares held. KKR also confirmed the deal in a separate statement. 'We are confident that the combined strengths of our organizations will unlock greater opportunities to enhance healthcare access across our markets,' said JB Pharma CEO Nikhil Chopra. India is Torrent's biggest market by revenue, where it competes with peers such as Mankind Pharma. Torrent offers drugs used to treat cancer, infections and diabetes, and has benefited from steady demand for its specialty and chronic illness drugs. For the January-March quarter, its consolidated net profit was up 11% from a year earlier.
Business Wire
3 days ago
- Business
- Business Wire
Torrent Pharma to Acquire Controlling Stake in J. B. Chemicals & Pharmaceuticals from KKR
MUMBAI, India--(BUSINESS WIRE)--Torrent Pharmaceuticals Limited ('Torrent') and global investment firm KKR today announced that Torrent has entered into definitive agreements to acquire controlling stake in J. B. Chemicals and Pharmaceuticals ('JB Pharma') from KKR at an Equity Valuation of INR 25,689 crores (on fully diluted basis), followed by a merger of the two entities. The transaction marks a significant step in Torrent's ambition to create a future-ready, diversified healthcare platform combining a deep chronic segment heritage with emerging international CDMO capabilities. The transaction will be executed in 2 phases: Acquisition of 46.39% equity stake (on a fully diluted basis) through a Share Purchase Agreement ('SPA') at a consideration of INR 11,917 crores (INR 1,600 per share) followed by a mandatory open offer to acquire up to 26% of JB Pharma shares from public shareholders at an open offer price of INR 1,639.18 per share. In addition to the above, Torrent has also expressed its intent to acquire up to 2.80% of equity shares from certain employees of JB Pharma at the same price per share as KKR. Merger between Torrent and JB Pharma through a scheme of arrangement. As per the approval given by the Board of Directors of both companies, upon merger of JB Pharma with Torrent, every shareholder holding 100 shares in JB Pharma shall receive 51 shares of Torrent. Samir Mehta, Executive Chairman, Torrent, commented: '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. This strategic alignment furthers our goal of strengthening our presence in the Indian pharma market, and build a larger diversified global presence. Moreover, the CDMO platform provides a new long-term avenue of growth for Torrent.' Gaurav Trehan, Co-Head of Asia Pacific and Head of Asia Pacific Private Equity, KKR, and CEO of KKR India, said: 'JB Pharma's transformation under our stewardship is a testament to KKR's ability to scale high-quality companies. We are proud to have collaborated with JB Pharma's management team, led by Nikhil Chopra, to bring the breadth of KKR's global experience and operational expertise to support the company's organic and inorganic growth, and help JB Pharma become one of India's fastest growing branded pharmaceutical companies. We believe the company is well-positioned for continued growth ahead and wish the team every success in its next chapter with Torrent.' Nikhil Chopra, Chief Executive Officer and Whole Time Director of JB Pharma, remarked: 'Over the past five years, JB Pharma has emerged as one of India's fastest growing pharmaceutical players, owing to KKR's strategic guidance, stewardship of our independent directors and a focused strategic and executional excellence by the management team. We have built a strong foundation to deliver market-leading growth, as well as consistent improvement in profitability in the medium and long term. As we now enter a new chapter alongside Torrent Pharmaceuticals, we are confident that the combined strengths of our organizations will unlock greater opportunities to enhance healthcare access across our markets.' Strategic Rationale for Acquisition Acquisition provides access to a fast-growing India franchise, with leading brands in the chronic segment, and entry into untapped therapeutic areas like ophthalmology Strengthens market share in the IPM for Torrent Operational synergies across multiple business functions Platform diversification: entry into the CDMO segment with long-term potential Consolidation in key international markets and greater ability to scale up Transaction Structure & Approvals Torrent will acquire 46.39% stake (on a fully diluted basis) through an SPA and additional potential acquisition of up to 2.80%, aggregating to 49.19% which will trigger a mandatory open offer of 26.0% as per Regulation 3 and 4 of SEBI (SAST) Regulations followed by a merger through a Scheme. Both the SPA and Scheme are subject to standard requisite statutory and regulatory approvals, including from Securities and Exchange Board of India (SEBI), Stock Exchanges, the Competition Commission of India (CCI), National Company Law Tribunal (NCLT), and other approvals, as applicable. Advisors Moelis & Company and NovaOne acted as financial advisors for Torrent. Khaitan & Co. acted as legal counsel to Torrent. Ernst and Young Merchant Banking Services LLP (for Torrent) and BDO Valuation Advisory LLP (for JB Pharma) acted as independent registered valuers. Kotak Investment Banking and Rothschild & Co acted as financial advisors to KKR. Shardul Amarchand Mangaldas & Co acted as legal counsel to KKR and JB Pharma. Goldman Sachs (India) Securities Pvt. Ltd. acted as the financial advisor to JB Pharma. AZB & Partners acted as legal counsel to the Board of Directors of JB Pharma. Fairness opinion on the share exchange ratio recommended by the valuer was provided by Axis Capital Limited to the Board of Torrent and by ICICI Securities Limited to the Board of JB Pharma. About Torrent Torrent Pharma is a leading player in the Indian pharmaceutical sector, concentrating on the chronic and sub-chronic therapeutic segments. The Company has established itself as a leader in developing niche pharmaceutical solutions through its patient-centric innovation. It also has a strong global presence across Brazil, Germany, and the United States. About JB Pharma J.B. Pharma (BSE: 506943 | NSE: JBCHEPHARM | ISIN: INE572A01028), is one of the fastest growing pharmaceutical companies in India and a leading player in the hypertension segment. Besides its strong India presence, which accounts for majority of its revenue, its other two home markets are Russia and South Africa. In India, the company has six brands among the top 300 IPM brands in the country. The company exports its finished formulations to over 40 countries including the USA, and is also a leading CDMO player in the segment of medicated lozenges. It has eight state of the art manufacturing facilities in India including a dedicated manufacturing facility for lozenges. The manufacturing facilities are certified by leading regulators across the world. About KKR KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR's insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR's investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR's website at For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group's website at
