Torrent Pharmaceuticals promoters sell 3% stake, raise Rs 3,087 crore

Torrent Group was actively pursuing the acquisition of Cipla and JB Chemicals and Pharmaceuticals but ultimately withdrew due to high valuations demanded by the sellers

The billionaire Mehta family — promoters of Torrent Pharmaceuticals — have sold 3 per cent stake in the company, raising Rs 3,087 crore for investments in new ventures and charitable initiatives.

 

This move will reduce promoter stake from 71.25 per cent to 68.25 per cent.

 

As of Wednesday, the company's total market capitalisation (mcap) stood at Rs 1.06 trillion, with shares closing at Rs 3,137 each.

 

The family also owns 53.57 per cent stake in Torrent Power with a total valuation at Rs 87,900 crore in the stock markets. 

 

A source said the family will utilise the funds for investments in the power business and expand the diagnostic unit.

 

Some of the funds would be kept aside for corporate social responsibility (CSR) initiatives, the source said.

 

According to Forbes, siblings Sudhir and Samir Mehta, who helm the Ahmedabad-based Torrent group, more than doubled their wealth in 2024 to $16.3 billion.

 

Their success is linked to Torrent’s expansion efforts, as the company seeks new acquisitions in the sector.

Torrent Group was actively pursuing the acquisition of Cipla and JB Chemicals and Pharmaceuticals but ultimately withdrew due to the high valuations demanded by the sellers.

 

Also, the group showed interest in acquiring SKS Power, a bankrupt company based in Chhattisgarh, but lost the bidding competition to Sarda Energy. 

Challenging the lenders’ actions, Torrent has filed a petition with the Supreme Court, which has sought a reply from the lenders and the resolution professional of Sarda Energy. The matter is pending.