Torrent Pharma, based in Ahmedabad, has revived talks with PE firm KKR to buy its stake in Mumbai-based JB Chemicals & Pharmaceuticals in a deal worth around Rs 20,000 crore.
At Friday's BSE closing price of Rs 1,803 per share, KKR's nearly 48% stake in JB Chem was valued at around Rs 13,400 crore. The transaction, which will result in Torrent making an open offer for up to 26% of the company's stake held by public shareholders, is expected to be completed soon, according to sources.
Key Highlights
- Torrent Pharma in advanced negotiations to acquire KKR’s 47.84% stake in JB Chemicals (~$2.4 bn).
- Deal could trigger open offer and is backed by plans to fund approximately $1.6 billion debt.
Negotiations between KKR and other bidders, including Torrent and Micro Labs, stalled last year due to valuation concerns. Attempts to reach Torrent Pharma and JB Chem were unsuccessful, and KKR officials were unavailable for comment.
The US private equity firm has been looking to exit its investment in JB Chem for some time, and sources say the deal with Torrent Pharma is likely to go ahead this time around. Typically, private equity firms seek to exit investments within three to four years. In March, KKR divested about 7% of its stake through block deals. In July 2020, the PE major purchased 54% of JB Chem from its promoters, the Mody family, for approximately Rs 3,100 crore, or Rs 745 per share.
Also Read: Torrent Group to Buy a Majority Stake in Gujarat Titans for Rs 7,500 crore
Following the acquisition, the company expanded its domestic formulations business, with significant growth in cardiac, ophthalmology, and anti-parasitic therapies. Over time, the company expanded its domestic presence and increased revenue from segments that provide long-term growth and margins. It introduced new products through both organic and inorganic channels, which helped to fill gaps in the business. JB Pharma's revenue in 2024-25 increased by 12% to Rs 3,918 crore. It grew 12% faster than the domestic pharmaceutical market, which grew 8%.Its top six brands—Rantac, Cilacar, Cilacar-T, Nicardia, Metrogyl, and Azmarda—are among the top 300 domestic brands.
