Torrent Pharmaceuticals on Sunday announced the acquisition of a controlling stake in JB Chemicals & Pharmaceuticals from KKR for a purchase price of up to ₹19,480 crore, translating into an equity valuation of ₹25,689 crore.

The acquisition will be followed by a merger of JB Chemicals with Torrent Pharmaceuticals, a joint statement said.

The Ahmedabad-based flagship company of the Torrent Group stated that the transaction will be executed in two phases. The acquisition of 46.39 per cent equity stake (on a fully diluted basis) through a Share Purchase Agreement at a consideration of ₹11,917 crore (₹1,600 per share) followed by a mandatory open offer to acquire up to 26 percent of JB Pharma shares from public shareholders at an open offer price of ₹1,639.18 per share, the company stated in an official release. In addition to the above, Torrent has also expressed its intent to acquire up to 2.80 per cent of equity shares from certain employees of JB Pharma at the same price per share as KKR.

The open offer price is higher than the purchase price from KKR and the employees of JB Pharmaceuticals. On the BSE, JB Chemicals and Pharmaceuticals had closed at a price of ₹1,799.35 per share on Friday. KKR has made five times return on its investment in JB Pharmaceuticals with an internal rate of return of 36 per cent.

As per the approval given by the board of directors of both companies, upon merger of JB Pharma with Torrent Pharmaceuticals, every shareholder holding 100 shares in JB Pharma shall receive 51 shares of Torrent. 

Samir Mehta, Executive Chairman, Torrent Pharmaceuticals, stated, “We are pleased to have on board the JB Pharma heritage and build on the platform for the future. Torrent’s deep India presence and JB Pharma’s fast growing India business, combined with the CDMO and international footprint offers immense potential to scale both revenue and profitability. This strategic alignment furthers our goal of strengthening our presence in the Indian pharma market, and build a larger diversified global presence. Moreover, the CDMO platform provides a new long-term avenue of growth for Torrent.”

The acquisition provides access to a fast-growing India franchise, with leading brands in the chronic segment, and entry into untapped therapeutic areas like ophthalmology. It will not only strengthen market share in the IPM for Torrent Pharmaceuticals but will also provide operational synergies across multiple business functions. “The transaction marks a significant step in Torrent’s ambition to create a future-ready, diversified healthcare platform combining a deep chronic segment heritage with emerging international CDMO capabilities,” the company stated.

Gaurav Trehan, Co-Head of Asia Pacific and Head of Asia Pacific Private Equity, KKR, and CEO of KKR India, stated, ““JB Pharma’s transformation under our stewardship is a testament to KKR’s ability to scale high-quality companies. We are proud to have collaborated with JB Pharma’s management team, led by Nikhil Chopra, to bring the breadth of KKR’s global experience and operational expertise to support the company’s organic and inorganic growth, and help JB Pharma become one of India’s fastest growing branded pharmaceutical companies. We believe the company is well-positioned for continued growth ahead and wish the team every success in its next chapter with Torrent.”

Nikhil Chopra, Chief Executive Officer and Whole Time Director of JB Pharma, said, “Over the past five years, JB Pharma has emerged as one of India’s fastest growing pharmaceutical players, owing to KKR’s strategic guidance, stewardship of our independent directors and a focused strategic and executional excellence by the management team. We have built a strong foundation to deliver market-leading growth, as well as consistent improvement in profitability in the medium and long term. As we now enter a new chapter alongside Torrent Pharmaceuticals, we are confident that the combined strengths of our organizations will unlock greater opportunities to enhance healthcare access across our markets”

Published on June 29, 2025