Torrent Pharmaceuticals Ltd. said on Sunday, June 29, that it will acquire JB Chemicals & Pharmaceuticals from private equity firm KKR in a deal valued at Rs 25,689 crore. The transaction will be completed in two stages. In the first phase, Torrent will purchase a 46.39 per cent stake for Rs 11,917 crore and may buy an additional 2.8 per cent from employees at a price not exceeding Rs 1,600 per share.

It will also make an open offer for 26 per cent at Rs 1,639.18 per share. In the second phase, the two companies will merge through a share-swap arrangement, offering JB Chemicals shareholders 51 Torrent shares for every 100 held. 

The open offer price represents an 8.9 per cent discount to JB Chemicals’ last closing price. The deal includes entry into the CDMO (contract manufacturing) space and adds to Torrent’s previous acquisitions, including Elder Pharma, Unichem Labs, and Curatio. JB Chemicals derives 58 per cent of its revenue from India and has moved from 33rd to 22nd in the Indian Pharma Market rankings during KKR’s five-year ownership. 

Shares of Torrent opened marginally higher on Monday at Rs 3,344.90 after gaining 4.73 per cent on Friday following news of the acquisition while that of JB Chemicals saw a decline of nearly 7 per cent on the NSE.

Torrent Pharma to acquire 72% stake in JB Chemicals in Rs 25,689-crore deal

Torrent Pharma will acquire a 46.39 per cent stake in JB Chemicals from private equity firm KKR at Rs 1,600 per share, amounting to Rs 11,917 crore. The company will also launch an open offer to acquire an additional 26 per cent stake at Rs 1,639.18 per share, taking the total deal value to over Rs 25,689 crore.

The acquisition structure includes a share swap arrangement, under which JB Chemicals shareholders will receive 51 Torrent Pharma shares for every 100 JB Chemicals shares held. The swap is expected to streamline the integration process and align shareholder interests.

How brokerages are viewing Torrent Pharma-JB Chem deal

Brokerages welcomed the move but advised caution on near-term performance:

Nomura maintained a 'neutral' rating with a target price of Rs 3,580, calling the deal a good strategic fit but pointing out that integration progress will be key for further upside.

HSBC reiterated a 'buy' rating with a target price of Rs 3,775, highlighting Torrent’s strengthened position in chronic therapies and enhanced CDMO (contract development and manufacturing) capabilities.

Jefferies also maintained a Buy stance with a target of Rs 3,740, emphasising Torrent’s entry into the lozenges CDMO export segment. The firm expects a net debt-to-EBITDA ratio of 2.5x, assuming 75 per cent debt financing — a level it views as manageable.

Analysts say the acquisition could significantly enhance Torrent’s leadership in chronic therapies and expand its reach in the high-margin global CDMO market. While short-term integration risks persist, the market views the move as a strategic long-term value driver.

Investor attention will now shift to regulatory approvals, deal closure timelines, and integration milestones, all of which will be critical in assessing the full impact on Torrent’s earnings and valuation.