In one of the Indian pharmaceutical industry’s largest strategic plays in recent times, Torrent Pharmaceuticals has signed definitive agreements to acquire a controlling stake in JB Chemicals and Pharmaceuticals from global investment giant KKR, at an equity valuation of ₹25,689 crore (fully diluted basis). The transaction will culminate in a full-scale merger between the two companies, marking Torrent’s entry into the CDMO space and unlocking new avenues for international expansion.
Deal Overview
The transaction will be executed in two phases:
- Equity Acquisition:
- Torrent will acquire 46.39% stake in JB Pharma via a share purchase agreement at ₹1,600 per share, totaling ₹11,917 crore.
- A mandatory open offer will follow, aiming to purchase up to 26% of shares from public shareholders at ₹1,639.18 per share.
- Torrent has also expressed interest in acquiring up to 2.80% stake from certain JB Pharma employees at the same offer price.
- Full Merger:
- As approved by both companies’ boards, JB Pharma will merge into Torrent.
- Shareholders of JB Pharma will receive 51 shares of Torrent for every 100 shares held.
Strategic Significance
This acquisition represents more than just consolidation—it reflects Torrent’s intent to become a future-ready global healthcare platform:
- Domestic Growth: JB Pharma brings a fast-growing India portfolio, especially in chronic segments and untapped therapies like ophthalmology.
- Global Expansion: With international operations and a foothold in Contract Development and Manufacturing (CDMO), JB Pharma offers Torrent a springboard for global scale.
- Operational Synergies: Cross-functional efficiencies are expected across manufacturing, R&D, and distribution.
- Platform Diversification: Entry into the CDMO sector adds a new growth vertical to Torrent’s already robust pharma operations.
Leadership Commentary
Samir Mehta, Executive Chairman of Torrent Pharmaceuticals, described the move as an inflection point:
“JB Pharma’s strong India franchise and growing global business, particularly in CDMO, perfectly complement Torrent’s strategic vision.”
Gaurav Trehan, CEO of KKR India, praised JB Pharma’s transformation during KKR’s tenure:
“The company is now among India’s fastest-growing branded pharmaceutical players. Torrent is well-placed to take it to the next level.”
Nikhil Chopra, CEO of JB Pharma, added:
“We’ve built a robust platform for sustained growth. This next chapter with Torrent will help amplify our healthcare impact across markets.”
Regulatory Path
The deal is subject to necessary clearances from:
- SEBI
- Stock Exchanges
- CCI (Competition Commission of India)
- NCLT (National Company Law Tribunal)
- Other applicable authorities
365247 Media Take
This deal is more than M&A—it’s a playbook for modern pharma growth: diversification, consolidation, and platform integration. Torrent’s aggressive push into CDMO and international markets also signals the shifting global ambitions of Indian pharmaceutical firms.
As India continues to position itself as the “pharmacy of the world,” expect more bold, ecosystem-building moves like this.
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CREDIT: Business Wire
