Torrent Pharma Set for INR 20K Cr JB Chem Takeover

KKR first acquired a majority 54% stake in JB Chemicals from its founding promoters, the Mody family, in July 2020 for approximately INR 3,100 Cr, translating to INR 745 per share.

Torrent Pharmaceuticals is in advanced negotiations to acquire JB Chemicals & Pharmaceuticals from private equity major KKR in a deal valued at around INR 20,734 Cr, multiple people aware of the matter confirmed.

The move comes nearly 10 months after their initial talks fell through.

The proposed transaction will see Torrent acquire KKR’s 47.84% controlling stake in JB Chemicals via its investment arm, TAU Investment, for an estimated INR 13,433.69 Cr.

The acquisition will also trigger a mandatory open offer for an additional 26% stake, potentially raising Torrent’s total holding to 73.84% in the company.

If fully executed, this would mark Torrent Pharma’s largest-ever acquisition, positioning it among India’s top pharma dealmakers.

KKR first acquired a majority 54% stake in JB Chemicals from its founding promoters, the Mody family, in July 2020 for approximately INR 3,100 Cr, translating to INR 745 per share.

Over the past five years, the PE major pared down its holdings slightly while retaining a controlling interest through TAU Investment.

Sources close to the negotiations said a formal announcement is expected in the coming weeks, pending final approvals and transaction structuring.

At current market prices, the overall buyout for Torrent Pharma would total INR 20,734.61 Cr, with the open offer component valued at around INR 7,300 Cr, assuming full acceptance.

The acquisition would significantly expand Torrent Pharma’s presence in the domestic formulations market and strengthen its over-the-counter (OTC) and chronic therapies portfolio. JB Chemicals, founded in 1976, is one of India’s leading branded generic players with a strong international footprint, particularly in Russia and CIS countries.

This transaction, if closed, will rank among India’s top pharma deals and continues the recent trend of consolidation and private equity exits within the sector.

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