Torrent Pharma to Acquire 49.19% Stake in JB Chemicals via ₹19,500 Crore Deal

Torrent Pharmaceuticals has announced a major acquisition to solidify its position as one of India’s top pharmaceutical players. The company is set to acquire a majority stake in JB Chemicals & Pharmaceuticals in a multi-phase transaction. Total Deal Size Estimated at ₹19,500 crore, making it the second-largest acquisition in India’s pharma industry.

In the first phase, Torrent will purchase:

• 46.39% stake from the current promoters of JB Chemicals, valued at ₹11,917 crore.
• Additional 2.8% stake from a group of JB Chemicals employees, at the same price of ₹1,600 per share, amounting to roughly ₹719 crore.

Following the initial share purchase, Torrent will launch a mandatory open offer:

• The open offer is for acquiring up to 26% stake from public shareholders.
• This will be priced at ₹1,639.18 per share, translating to a potential outlay of ₹6,842.8 crore.

The deal structure spans two phases:

• Phase 1: Direct stake purchases from promoters and employees.
• Phase 2: A merger of JB Chemicals with Torrent Pharma to consolidate operations and enhance synergy.

The acquisition values JB Chemicals at ₹25,689 crore on a fully diluted basis, according to the company’s official announcement. Torrent Pharmaceuticals aims to strengthen its chronic segment portfolio, where JB Chemicals has a strong legacy. The deal is also seen as a strategic move to scale up international CDMO (Contract Development and Manufacturing Organization) capabilities.

Torrent described the move as a step toward building a “future-ready, diversified healthcare platform”, combining its domestic strength with international expansion potential. The transaction is being executed with backing from global investment firm KKR, which currently holds the controlling stake in JB Chemicals.

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