Torrent Pharmaceuticals said on Sunday it will acquire a 46.39 per cent of controlling stake in smaller peer JB Chemicals and Pharmaceuticals from New York-based investment firm KKR, and plans to merge the two drugmakers.

The transaction, announced in a joint statement released by the three companies, implies a total equity valuation of ₹25,689 crores($3.01 billion) for JB Pharma on a fully diluted basis.

"This strategic alignment furthers our goal of strengthening our presence in the Indian pharma market, and building a larger diversified global presence," Torrent Executive Chairman Samir Mehta said in the statement.

Under the terms of the deal, Torrent will initially acquire an equity stake in JB Pharma from KKR for ₹11,917 crores

Following this, Torrent will launch a mandatory open offer to acquire up to an additional 26 per cent of JB Pharma shares from public shareholders at ₹1,639.18 per share.

Torrent also signalled its intent to acquire up to 2.80 per cent of equity shares from certain JB Pharma employees, the company said.

The second phase of the transaction involves a merger of Torrent and JB Pharma through a scheme of arrangement. Upon merger, JB Pharma shareholders will receive 51 Torrent shares for every 100 JB Pharma shares held.

KKR also confirmed the deal in a separate statement.

"We are confident that the combined strengths of our organisations will unlock greater opportunities to enhance healthcare access across our markets," said JB Pharma CEO Nikhil Chopra.

India is Torrent's biggest market by revenue, where it competes with peers such as Mankind Pharma.

Torrent offers drugs used to treat cancer, infections and diabetes, and has benefited from steady demand for its specialty and chronic illness drugs.

KKR's sale of its controlling stake in JB Pharma has reaped five times its initial investment in the company on a local currency basis, which translates to a 36 per cent gross internal rate of return, said a person with knowledge of the transaction, who declined to be named as the information was not public.

KKR bought a controlling stake in JB Pharma in 2020 at ₹745 a share, it said at the time.

The firm declined to comment.

For the January-March quarter, its consolidated net profit was up 11 per cent from a year earlier.

JB Chemicals and Pharmaceuticals, meanwhile, reported higher fourth-quarter profit in May.

Along with the steady market for its gastrointestinal medicines, Metrogyl and Sporlac, the company also benefited from demand for its drugs that treat chronic conditions such as hypertension.

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Published on June 30, 2025