June 30, 2025
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Torrent Pharma to acquire controlling stake in JB Chemicals from KKR
Ahmedabad-based drugmaker Torrent Pharmaceuticals is set to acquire a controlling stake in JB Chemicals and Pharmaceuticals (JB Pharma) from global investment firm KKR, at an equity valuation of Rs.25,689 crore. The deal will be followed by a merger of the two entities, the company announced on Sunday evening.
The deal will strengthen Torrent’s presence in the Indian market, as well as facilitate its entry into the fast-growing contract development and manufacturing (CDMO) segment.
Torrent will acquire a 46.39% equity stake (on a fully diluted basis) in JB Pharma through a share purchase agreement for Rs.11,917 crore at Rs.1,600 per share, followed by a mandatory open offer to acquire up to 26% of the company’s shares from public shareholders, at an open offer price of Rs.1,639.18 per share. Torrent also intends to acquire up to 2.80% of equity shares from certain employees of JB Pharma at the same share price as KKR, the company said in a release.
JB Pharma is one of the fastest growing pharma companies in India, and comes with flagship brands such as Cilacar, Metrogyl, Nicardia and Rantac. The company also exports its finished formulations to over 40 countries, including the US, and is a leading CDMO player in the segment of medicated lozenges.
The acquisition will be followed by a merger between Torrent and JB Pharma through a scheme of arrangement.
KKR Healthcare Track Record
The investment in JB Pharma yielded an over 5x return for KKR with a gross internal rate of return of about 36%, a person aware of the development, who did not wish to be quoted, told Mint.
KKR has had a strong track record of healthcare investments in India, including a $600 million financing to Manipal Group recently and a 5x return on its investment in Max Healthcare in 2022.
How Torrent will benefit:
The acquisition will provide Torrent access to a fast-growing India franchise, with JB’s leading brands in the chronic segment, and entry into untapped therapeutic areas like ophthalmology, strengthen Torrent’s market share in the Indian market, and facilitate its entry into the CDMO segment. It will also aid consolidation in key international markets, the company said.
“Torrent’s deep India presence and JB Pharma’s fast growing India business, combined with the CDMO and international footprint, offers immense potential to scale both revenue and profitability,” Samir Mehta, executive chairman, Torrent Pharmaceuticals, said in the statement. “Moreover, the CDMO platform provides a new long-term avenue of growth for Torrent,” he added.
KKR acquired a 54% stake in JB Pharma from the promoters, the Mody family, in July 2020 for about Rs.3,100 crore, or Rs.745 per share.
The investment firm sold over 5% of stake in the company in March 2025 through block deals for Rs.1,459 crore, bringing its holding down to 47.84%.
Torrent Pharma’s growth over the years:
Torrent Pharmaceuticals has grown over the years through inorganic moves. In 2017, it acquired women’s healthcare brands from Novartis, as well as Unichem’s Indian branded business along with its Sikkim plant. In 2022, it acquired Curatio Healthcare for Rs.2,000 crore.
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