Pill-ionaire Move: Indian Pharma Giant Swallows 46.4% Stake in Rs 18,000-Crore Deal

Torrent Pharmaceuticals has made headlines by acquiring a 46.39% controlling stake in JB Chemicals & Pharmaceuticals from New York-based investment firm KKR for ₹18,000 crore, marking the second largest deal ever in India’s pharmaceutical sector. The landmark transaction is set to reshape the industry landscape, with a merger planned between the two companies.

 

Key Highlights:

 

Mega Acquisition: Torrent will first acquire KKR’s 46.39% stake in JB Chemicals, and has announced a mandatory open offer to public shareholders at ₹1,639.18 per share, with plans to buy up to 2.8% more from employees.

 

Strategic Merger: The deal will be followed by a merger, where JB Pharma shareholders will receive 51 Torrent shares for every 100 JB Pharma shares held.

 

Growth Synergy: The combined entity will strengthen Torrent’s chronic segment presence and expand its reach in global CDMO markets, unlocking new growth avenues.

 

Industry Impact: The move consolidates Torrent’s position as a major player in India and boosts its international footprint, while JB Pharma’s CEO expressed confidence in the merged group’s ability to enhance healthcare access.

 

Outlook:

The acquisition signals a wave of consolidation in Indian pharma, with Torrent poised for accelerated growth and deeper global expansion as regulatory approvals are secured.

 

Source: India.com