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Business

Torrent Pharma Seeks CCI Nod for INR 19,500-Crore Acquisition of JB Chemicals, Set to Become India’s Second Most Valuable Pharma Giant

The company intends to acquire 46.39% stake in JB Chemicals from promoter Tau Investment Holdings Pte Ltd, an affiliate of global investment firm KKR, for approximately INR 11,917 crore. An additional 2.80% stake will be purchased from JB Chemicals employees for INR 719 crore, at a per-share price of INR 1,600.

Torrent Pharma Seeks CCI Nod for INR 19,500-Crore Acquisition of JB Chemicals, Set to Become India’s Second Most Valuable Pharma Giant
Business

Torrent Pharmaceuticals has officially approached the Competition Commission of India (CCI) to seek regulatory clearance for its proposed acquisition of JB Chemicals & Pharmaceuticals in a landmark ₹19,500-crore transaction. The move marks one of the largest consolidation efforts in India’s pharmaceutical landscape.

According to the notice filed with the CCI, the transaction entails Torrent Pharma acquiring a significant shareholding in JB Chemicals, followed by a merger of the target company with the acquirer. Upon completion, Torrent Pharma is poised to become the second most valuable pharmaceutical company in the country.

This follows Torrent’s June 2025 announcement detailing the contours of the deal. The company intends to acquire 46.39% stake in JB Chemicals from promoter Tau Investment Holdings Pte Ltd, an affiliate of global investment firm KKR, for approximately ₹11,917 crore. An additional 2.80% stake will be purchased from JB Chemicals employees for ₹719 crore, at a per-share price of ₹1,600.

Subsequent to these transactions, Torrent Pharma will launch a mandatory open offer to acquire up to 26% stake from public shareholders, offering ₹1,639.18 per share — translating to an additional ₹6,842.8 crore.

If approved, the deal will stand as the second-largest in Indian pharma history, trailing only Sun Pharma’s USD 4-billion acquisition of Ranbaxy Laboratories in 2015. Following the share acquisition and merger, JB Chemicals will be fully integrated into Torrent Pharmaceuticals.

Both companies operate in overlapping segments, particularly in the manufacturing and marketing of finished dosage formulations (FDFs), raising the need for antitrust scrutiny. Torrent Pharma, the flagship of the ₹45,000-crore Torrent Group, is a key player in therapeutic areas including cardiology, central nervous system, and gastroenterology, with annual revenues exceeding ₹11,500 crore.

JB Chemicals, established in 1976, is known for its robust portfolio across therapeutic segments such as gastroenterology, dermatology, and diabetes. It also produces active pharmaceutical ingredients (APIs) and provides contract development and manufacturing (CDMO) services.

Private equity firm KKR had acquired a 65% stake in JB Chemicals in 2020, and earlier this year, offloaded a 5.8% stake for ₹1,460 crore via open market transactions.

If the acquisition clears regulatory hurdles, the deal will not only reshape Torrent Pharma’s growth trajectory but also further consolidate India’s pharmaceutical sector, currently one of the fastest-growing in the world.