Gujarat-based Torrent Pharmaceuticals has resumed acquisition discussions with private equity firm KKR to buy its 47.84% stake in JB Chemicals & Pharmaceuticals (JB Pharma), according to sources familiar with the matter. A formal agreement is expected to be signed soon.
Torrent had previously entered into extended negotiations with KKR last year, but the deal fell through due to valuation disagreements.
KKR had bought a 54% stake in JB Pharma from the company’s promoter, the Modi family, in July 2020 for about Rs 3,100 crore at Rs 745 per share. Based on JB Pharma’s closing share price of Rs 1,802.9 on June 27, KKR’s current stake is worth about Rs 13,400 crore.
The transaction will trigger a mandatory open offer for up to 26% of JB Pharma’s public shareholding.
KKR declined to comment on the development. Torrent Pharma and JB Pharma also did not respond to email queries.
Torrent has steadily expanded its portfolio through strategic acquisitions. Key deals include Elder Pharma’s Indian branded business in 2013, Zyg Pharma’s dermaceutical segment in 2015, Glochem Industries’ API plant in 2016, Novartis’ women’s healthcare brands and Unichem’s Indian business with its Sikkim plant in 2017, and the Rs 2,000 crore acquisition of skincare specialist Curatio Healthcare in 2022.
JB Pharma: Business Overview and Performance
Founded in 1976, JB Pharma manufactures a wide range of pharmaceutical products, including those for gastroenterology, hypertension, dermatology, and diabetes. Its leading brands include Cilacar, Metrogyl, Nicardia, and Rantac. The company exports its formulations—tablets, capsules, creams, and more—to over 40 countries, including the United States. It also ranks among the top five global producers of medicated and herbal lozenges.
JB Pharma reported revenue of Rs 3,918 crore in FY25, up 12% from Rs 3,484 crore in FY24. EBITDA grew 16% to Rs 1,087 crore from Rs 939 crore, while profit after tax grew 19% to Rs 660 crore from Rs 553 crore in the previous year.
Domestic revenue grew by 20% to Rs 2,269 crore. According to IQVIA, the company’s 12% growth in FY25 outpaced the Indian pharmaceutical market, which expanded by 8%.
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This article is for informational purposes only and does not constitute financial or investment advice. The details presented are based on publicly available sources and statements from individuals familiar with the matter. Neither the author nor the publisher is responsible for any investment decisions made based on this content. Readers are advised to consult financial professionals before acting on any related information.
