Torrent Pharma To Buy Controlling Stake In J.B. Chemicals For ₹256.89 Billion

Torrent Pharmaceuticals Ltd. on Sunday announced it has signed a definitive agreement to acquire a controlling stake in J.B. Chemicals and Pharmaceuticals Ltd. at an equity valuation of ₹256.89 billion on a fully diluted basis.

Torrent will acquire 46.39% equity from global investment firm KKR for ₹119.17 billion at ₹1,600 per share, and has also expressed interest in buying a 2.8% stake from J.B. Chemicals' employees at the same price, taking total ownership to 49.19%. This triggers a mandatory open offer for an additional 26% stake at ₹1,639.18 per share. J.B. Chemicals’ stock closed at ₹1,801.40 on Friday on the NSE.

Following the open offer, J.B. Chemicals will be merged with Torrent Pharma. Shareholders of J.B. Chemicals will receive 51 shares of Torrent Pharma for every 100 shares held. Torrent Pharma shares closed at ₹3,341.40 on Friday, up 3.7%.

The acquisition will help Torrent Pharma expand into chronic therapies, ophthalmology, and the contract development and manufacturing space, while also strengthening its India business and global reach.