In a landmark transaction in India’s pharmaceutical sector, Torrent Pharmaceuticals announced on Sunday that it will acquire a controlling stake in JB Chemicals and Pharmaceuticals in a deal worth ₹19,500 crore. This strategic move is set to make Torrent the second most valued pharmaceutical company in India.
Torrent will initially acquire 46.39% stake from JB Chemicals’ promoter, Tau Investment Holdings Pte Ltd, a KKR entity, for approximately ₹11,917 crore. Additionally, it will buy a 2.80% stake from certain JB Chemicals employees for ₹719 crore, at an acquisition price of ₹1,600 per share.
Following these acquisitions, Torrent will launch a mandatory open offer to purchase an additional 26% stake from public shareholders, as per regulatory requirements. The open offer is priced at ₹1,639.18 per share, totaling ₹6,842.8 crore. Notably, the offer price stands below JB Chemicals’ last closing price of ₹1,799.35 on the Bombay Stock Exchange (BSE).
This is the second-largest deal ever in India’s pharmaceutical space, trailing only Sun Pharma’s acquisition of Ranbaxy Laboratories in 2015.
In a joint statement, Torrent Pharmaceuticals and KKR confirmed that definitive agreements have been signed for the transaction. The deal values JB Chemicals at ₹25,689 crore on a fully diluted basis and includes a planned merger of JB Chemicals into Torrent.
As part of the merger arrangement, shareholders of JB Chemicals will receive 51 shares of Torrent for every 100 shares held.
Torrent will benefit from JB Chemicals’ established presence in the chronic therapy space and gain access to new segments such as ophthalmology. The acquisition is also expected to boost Torrent’s position in the Indian Pharmaceutical Market (IPM) and enhance its capabilities in the Contract Development and Manufacturing Organization (CDMO) segment.
“This strategic alignment enhances our footprint in the Indian pharma market and opens up long-term opportunities globally,” said Samir Mehta, Executive Chairman of Torrent Pharmaceuticals. “JB Pharma’s strengths in the CDMO space and international markets perfectly complement Torrent’s ambitions.”
JB Pharma CEO Nikhil Chopra remarked that the company had grown significantly over the past five years under KKR’s guidance and expressed confidence in the future with Torrent. “Together, we will be better positioned to expand healthcare access and drive growth across multiple markets,” he said.
Gaurav Trehan, KKR’s Co-Head of Asia Pacific and CEO of KKR India, highlighted JB Pharma’s transformation during KKR’s tenure, stating that the company is now well-positioned for its next phase of growth.
The transaction is subject to regulatory approvals from the Securities and Exchange Board of India (SEBI), Stock Exchanges, the Competition Commission of India (CCI), and the National Company Law Tribunal (NCLT), among others.
Once completed, the merger will significantly expand Torrent’s product portfolio, international footprint, and growth avenues—marking a new chapter in India’s evolving pharmaceutical landscape.