Torrent Pharmaceuticals Ltd has signed definitive agreements to acquire a controlling 46.39% stake in JB Chemicals & Pharmaceuticals Ltd (JB Pharma) from global investment firm KKR, valuing the company at ₹25,689 crore on a fully diluted basis. The transaction positions Torrent as India’s second most valuable pharmaceutical firm post-merger.

The acquisition will take place in three structured phases:

1. Primary Share Purchase: Torrent will acquire 7.44 crore shares (46.39%) from KKR at ₹1,600 per share, totalling approximately ₹11,917 crore.
2. Open Market Offer: Following SEBI regulations, Torrent will launch an open offer for 26% of JB Pharma’s equity at ₹1,639.18 per share, aggregating to about ₹6,842.8 crore.
3. Merger with Torrent: JB Pharma will be merged into Torrent, and existing shareholders of JB Pharma will receive 51 Torrent shares for every 100 JB shares held.

This move marks India’s second-largest pharma acquisition, trailing only Sun Pharma’s purchase of Ranbaxy in 2015.

Strategic Rationale

The acquisition aligns with Torrent Pharma’s long-term strategy to expand its footprint across chronic therapies, ophthalmology, and contract development & manufacturing (CDMO) services. JB Pharma’s strong domestic growth and international presence, particularly in Russia, South Africa, and the US, complements Torrent’s India-centric model.

With JB Pharma’s portfolio of leading brands and capabilities, the deal is expected to deliver substantial synergies in marketing, operations, R&D, and manufacturing scale. Notably, the addition of CDMO services offers Torrent a new, scalable growth avenue in global pharma services.

Executive Commentary

Samir Mehta, Executive Chairman, Torrent Pharmaceuticals, emphasised, “This strategic alignment furthers our vision of creating a diversified and future-ready pharma platform. JB Pharma’s strengths in chronic therapies and international markets, combined with our India depth, will unlock significant growth opportunities.”

Gaurav Trehan, CEO of KKR India, added, “JB Pharma’s transformation over the years stands as a testament to KKR’s partnership-driven growth model. We are confident the company will thrive under Torrent’s stewardship.”

Also read: LogicFlo AI Secures $2.7M to Power AI-Driven Productivity in Pharma and Life Sciences

Regulatory Approvals Pending

The transaction is subject to regulatory clearances from SEBI, Stock Exchanges, Competition Commission of India (CCI), National Company Law Tribunal (NCLT), and other statutory bodies.

This transaction underlines the growing trend of consolidation and capability expansion in Indian pharma. By combining Torrent’s deep domestic penetration with JB’s international reach and differentiated offerings, the deal sets a new benchmark in value creation and strategic synergy for Indian pharmaceutical companies aiming at global competitiveness.

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