Business

Torrent Pharma on Verge of INR 20,700?Crore Acquisition of JB Chemicals

The company is currently in advanced negotiations with private equity firm KKR to secure its entire 47.84?% stake via TAU Investment—an agreement that would also initiate a regulatory-mandated open offer to acquire up to an additional 26?% of JB Chem’s shares.

• By Newsdesk
• New Delhi
• Jun 28, 2025

Business

Ahmedabad-based Torrent Pharmaceuticals is nearing a major acquisition of JB Chemicals & Pharmaceuticals in a deal valued at approximately ₹20,734 crore (about $2.4 billion). The company is currently in advanced negotiations with private equity firm KKR to secure its entire 47.84 % stake via TAU Investment—an agreement that would also initiate a regulatory-mandated open offer to acquire up to an additional 26 % of JB Chem’s shares.

KKR initially invested in JB Chemicals in July 2020, acquiring a 54 % stake for around ₹3,100 crore (₹745 per share). Its current holding is valued at about ₹13,400 crore based on recent share prices of roughly ₹1,800 per share. If Torrent's negotiations conclude successfully, it could end up owning nearly 74 % of the company.

A formal announcement is expected in the coming weeks. The deal marks Torrent’s largest acquisition to date and would significantly expand its portfolio in branded generics; JB Chem’s top eight brands—including Nicardia, Rantac, Cilacar, and Metrogyl—account for half of its approximately ₹3,900 crore in revenue. Additionally, the acquisition opens the door for Torrent to enter the CDMO (contract development and manufacturing) space, thanks to JB Chem’s established collaborations with multinational clients on products like cough lozenges.

To finance the purchase, Torrent has started consultations with HSBC, Standard Chartered, and Barclays to arrange approximately $1.6 billion in funding, tapping refreshed bond financing previously lined up by those institutions.

Financial backing will support what would be Torrent’s most substantial acquisition, underscoring its growing ambition to secure a position among India’s top three pharmaceutical companies within the next several years through strategic acquisitions.