Torrent Pharma strikes US$3B deal to acquire controlling stake in JB Chemicals

INDIA—Torrent Pharmaceuticals has announced a major acquisition of a controlling stake in JB Chemicals & Pharmaceuticals Ltd from the New York-based global investment firm KKR, marking a significant step in its growth strategy.

The deal, valued at approximately Rs. 25,689 crore (US$3.01 billion), will be executed in two phases and will culminate in the merger of the two companies to create a diversified healthcare platform.

In the first phase, Torrent will acquire 46.39% of JB Pharma’s equity shares from the promoter, Tau Investment Holdings, at Rs. 1,600 per share, totalling Rs. 11,917 crore (US$1.4 billion).

This will be followed by a mandatory open offer to public shareholders to acquire up to 26% of the shares at Rs. 1,639.18 per share (US$185 per share), totaling about Rs. 6,843 crore (US$770 million).

Additionally, Torrent intends to purchase up to 2.8% of shares from certain JB Pharma employees at the same price as the promoter stake.

Following regulatory approvals, the second phase will involve merging JB Pharma into Torrent Pharmaceuticals.

Under the merger terms, every 100 shares of JB Pharma will be exchanged for 51 shares of Torrent, effectively consolidating the two companies’ operations and shareholder bases.

Samir Mehta, Executive Chairman of Torrent, expressed enthusiasm about integrating JB Pharma’s heritage and expanding the combined entity’s reach.

He highlighted the complementary strengths of Torrent’s established presence in India and JB Pharma’s fast-growing business, along with the strategic entry into the contract development and manufacturing organization (CDMO) segment, which offers long-term growth potential.

Gaurav Trehan, KKR’s Asia Pacific co-head and CEO of KKR India, praised the transformation of JB Pharma under KKR’s stewardship and expressed confidence in the company’s future growth prospects with Torrent.

Meanwhile, Nikhil Chopra, CEO of JB Pharma, noted that the company has built a strong foundation for market-leading growth and profitability, and he is optimistic about the opportunities the merger will unlock in enhancing healthcare access across markets.

JB Chemicals & Pharmaceuticals, established in 1976, reported revenues of Rs. 3,918 crore (US$440 million) and a net worth of Rs. 3,433 crore (US$385 million) as of March 31, 2025.

The company has a significant presence in India and international markets, including Russia, the United Arab Emirates (UAE), South Africa, and the Philippines.

It boasts six brands among the top 300 in the Indian Pharmaceutical Market (IPM) and exports finished formulations to over 40 countries, including the USA.

JB Pharma is also a leading player in the medicated lozenges CDMO segment, with eight state-of-the-art manufacturing facilities certified by global regulators.

This acquisition is expected to strengthen Torrent’s market share in India, broaden its product portfolio into new therapeutic areas such as ophthalmology, and enhance its global footprint.

The combined entity aims to leverage operational collaborations and scale up both revenue and profitability, positioning itself as a future-ready healthcare leader.

The transaction is subject to approvals from various regulatory bodies, including the Securities and Exchange Board of India (SEBI), the Competition Commission of India (CCI), and the National Company Law Tribunal (NCLT).

Torrent anticipates completing the acquisition and merger within six months.

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