Torrent Pharma’s shares closed at Rs 3,409.70, up 1.95 percent on the BSE on Monday, reaching an intraday high of Rs 3,474.60 from the previous close of Rs 3,344.40. This follows Torrent Pharmaceuticals signing definitive agreements to acquire a controlling stake in JB Chemicals and Pharmaceuticals (JB Pharma) from global private equity firm KKR, at an equity valuation of Rs 25,689 crore (fully diluted basis).
In the business world, this deal is deemed as a landmark moment set to redefine the contours of India’s pharma industry.
JB Chemicals stocks tumbled over 7 percent after Torrent Pharma announced the acquisition.
The transaction, which will be followed by a merger of the two entities, positions Torrent as the second most valuable pharmaceutical company in the country—marking the second-largest deal in India’s pharma sector after Sun Pharma’s 2015 acquisition of Ranbaxy.
According to reports, the transaction will unfold in two phases.
First, Torrent will acquire a 46.39 percent stake in JB Pharma from KKR for Rs 11,917 crore at Rs 1,600 per share through a Share Purchase Agreement (SPA).
Demonstrating a commitment to long-term value creation, Torrent plans to acquire up to 2.80 percent equity from certain JB Pharma employees at the same price.
Besides, it will launch a mandatory open offer to public shareholders for an additional 26 percent stake at Rs 1,639.18 per share inviting wider participation in what promises to be a transformative journey for the company.
Beyond the numbers, the strategic rationale of the acquisition is deeply rooted in future-forward thinking. It offers Torrent Pharma access to JB Pharma’s robust chronic therapy portfolio and facilitates entry into untapped therapeutic areas such as ophthalmology.
Samir Mehta, Executive Chairman of Torrent Pharmaceuticals, shared his optimism: “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,” he was quoted as saying.
The market’s reaction was swift as Torrent Pharma shares rose by 4 percent to Rs 3,479 on June 30, before paring gains, ending the day about 1 percent higher. JB Chemicals stock plummeted by over 6 percent, claimed reports.
HSBC reiterated a ‘Buy’ rating, citing confidence in Torrent’s bolstered capabilities in chronic therapies and international CDMO expansion.
HSBC described the deal as “the next leg of growth for the company.” “While the size of the deal is larger than Torrent’s previous acquisitions, it reinforces their intent to scale aggressively,” HSBC noted.
Nomura, A global financial services group, maintained a ‘Neutral’ rating with a price target of Rs 3,580, noting the deal’s scale was significantly larger than Torrent’s past acquisitions, but highlighted the comfort investors might take in the company’s proven M&A track record and structured integration approach.
Gaurav Trehan, Co-Head of Asia Pacific and Head of Asia Pacific Private Equity at KKR, told a section of the media: “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.”
JB Pharma’s CEO and Whole-Time Director, Nikhil Chopra, further echoed the optimism, saying, “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 organisations will unlock greater opportunities to enhance healthcare access across our markets.”
The warm handshake with JB Pharma has furthered the glowing reputation of Torrent Pharma.
Torrent is regarded among the top firms in critical therapeutic segments. It has earned leadership position in cardiovascular (CV), central nervous system (CNS), gastro-intestinal (GI), women’s healthcare (WHC), vitamins, minerals & nutrients (VMN), and cosmo-dermatology. Its reach further extends into vital segments like diabetology, pain management, gynaecology, oncology, and anti-infectives—delivering a comprehensive portfolio of treatments aimed at enhancing the quality of life for patients worldwide.
The group has aptly stayed true to its name, Torrent.
With the force, energy and forward motion of a ‘torrent’, it has stayed powerful, purposeful, and ever-progressing.
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