In a significant consolidation move in India’s pharmaceutical sector, Torrent Pharmaceuticals announced on Sunday that it will acquire a 46.39% controlling stake in JB Chemicals and Pharmaceuticals from U.S.-based investment firm KKR, with plans to subsequently merge the two companies.
The transaction, revealed in a joint statement by Torrent, JB Pharma, and KKR, values JB Pharma at ₹256.89 billion (approximately $3.01 billion) on a fully diluted equity basis.
“This strategic alignment supports our ambition to strengthen Torrent’s presence in the Indian pharmaceutical market and expand our global footprint,” said Torrent’s Executive Chairman Samir Mehta.
As part of the deal, Torrent will initially acquire the 46.39% stake from KKR for ₹119.17 billion. Following this, it will launch a mandatory open offer to acquire up to an additional 26% stake from JB Pharma’s public shareholders at ₹1,639.18 per share. Torrent also plans to purchase up to 2.80% of equity from JB Pharma employees.
The second phase of the transaction involves the merger of JB Pharma with Torrent Pharmaceuticals through a scheme of arrangement. Upon completion of the merger, JB Pharma shareholders will receive 51 Torrent shares for every 100 shares they hold in JB Pharma.
KKR, which acquired JB Pharma in 2020 at ₹745 per share, has confirmed the transaction in a separate statement. According to a source familiar with the matter, the private equity giant has realized a fivefold return on its investment, equating to a gross internal rate of return (IRR) of 36% in local currency terms.
JB Pharma CEO Nikhil Chopra welcomed the deal, stating, “We believe the combined strengths of our organizations will create greater opportunities to expand access to healthcare across our key markets.”
Torrent Pharmaceuticals, which competes with players like Mankind Pharma in India, has a strong portfolio in specialty and chronic therapies, including treatments for cancer, infections, and diabetes. The company recently reported an 11% year-on-year increase in consolidated net profit for the January–March quarter.
JB Pharma, known for its popular gastrointestinal brands like Metrogyl and Sporlac, has also seen consistent demand in the chronic segment, particularly for hypertension drugs. The company reported a rise in its Q4 profit in May.
The merger is expected to create a more diversified and competitive entity in the Indian and global pharmaceutical markets.