Torrent’s ₹25,689 Cr Power Play Shakes Pharma Street—JB Chemicals Dips, Torrent Rises

In a landmark pharma deal, Torrent Pharmaceuticals has announced the acquisition of a 46.39% controlling stake in JB Chemicals & Pharmaceuticals Ltd from KKR for ₹11,917 crore, triggering a ripple across Dalal Street. The transaction, valued at ₹25,689 crore on a fully diluted basis, will be followed by a mandatory open offer for an additional 26% stake at ₹1,639.18 per share.

 

Key Highlights:

 

Market Reaction:

 

JB Chemicals shares fell 5.4% in pre-open trade, reacting to the open offer price being 8.9% below Friday’s close.

 

Torrent Pharma rose 2.2%, buoyed by investor optimism over long-term synergies.

 

Deal Structure:

 

Torrent will acquire 7.44 crore shares from KKR at ₹1,600 apiece.

 

An open offer for 4.17 crore shares follows, totaling ₹6,842.8 crore if fully subscribed.

 

A merger scheme has been approved, offering 51 Torrent shares for every 100 JB shares.

 

Strategic Upside:

 

The deal positions Torrent as India’s fifth-largest pharma company.

 

Gains access to JB’s chronic therapy portfolio, CDMO (lozenges) business, and pan-India MR network.

 

JB’s brands like Cilacar, Metrogyl, and Rantac add depth to Torrent’s domestic play.

 

Analyst View: While the deal may be EPS-dilutive in the short term, brokerages see long-term value creation through cost synergies and expanded market share.

 

This bold move signals Torrent’s intent to dominate India’s pharma landscape—one acquisition at a time.

 

Sources: Business Today, Economic Times, Moneycontrol