Torrent Pharma to acquire JB Pharma from KKR at ₹25,689 cr valuation

Torrent Pharma will acquire KKR's 46.39% stake in JB Pharma followed by open offer and merger, strengthening chronic segment and CDMO footprint in India and abroad

In one of the largest pharmaceutical deals in India in recent years, Ahmedabad-based Torrent Pharmaceuticals will acquire a controlling stake in investment firm KKR-backed JB Chemicals and Pharmaceuticals (known as JB Pharma) at an equity valuation of ₹25,689 crore.

 

This will be followed by the merger of the two entities.

 

The deal will be executed in two phases: First the acquisition of the 46.39 per cent stake of KKR in JB Pharma at ₹1,600 per share, amounting to ₹11,917 crore, and then a mandatory open offer to acquire up to 26 per cent of JB Pharma shares from public shareholders at an open offer price of ₹1639.18 per share.

 

“In addition to the above, Torrent has expressed its intent to acquire up to 2.8 per cent of equity shares from certain employees of JB Pharma at the same per share price as KKR,” the company said in  a statement on Sunday.

 

The next step of the deal will be a merger between Torrent Pharma and JB Pharma through an arrangement whereby every shareholder having 100 shares in JB Pharma will receive 51 shares of Torrent Pharma.

 

The board of directors of both companies has approved this arrangement. 

 

 

KKR had acquired 54 per cent in JB Pharma in July 2020 from the promoters and founders, the Mody family, for approximately ₹3,100 crore (or ₹745 per share). It sold part of its stake in March this year through block deals for ₹1,459.8 crore.

 

KKR gains more than five times on its investment with around a 36 per cent gross internal rate of return.

 

Torrent Pharma says the transaction will help it to create a diversified health care platform, combining a deep chronic segment heritage with emerging contract development and manufacturing capabilities. 

 

JB Pharma ranks among the top five manufacturers globally in medicated and herbal lozenges. The acquisition provides access to leading brands in the chronic segment, and entry into untapped therapeutic areas like ophthalmology. It said the deal would strengthen its share in the domestic formulations market apart from operational synergies across multiple business functions.

 

For example, Torrent Pharma earlier indicated that it had plans to increase its strength of medical representatives (MR) by 23 per cent by the end of FY26 and the acquisition can help with manpower augmentation.  

 

Torrent Pharma has a 3.74 per cent market share in the domestic market (according to Pharmarack May 2025), while JB Pharma has 1.12 per cent.

 

Further, consolidation in key international markets would allow greater ability to scale up.

 

Samir Mehta, executive chairman, Torrent Pharma, said the idea was to build on JB Pharma’s heritage and platform. 

 

“Torrent’s deep India presence and JB Pharma’s fast-growing India business, combined with the CDMO (contract development and manufacturing organisation) and international footprint, offer immense potential to scale both revenue and profitability. This strategic alignment furthers our goal of strengthening our presence in the Indian pharma market, and builds a larger diversified global presence. Moreover, the CDMO platform provides a new long-term avenue of growth for Torrent.”

 

Torrent took the inorganic route earlier to grow its business and enter newer segments. In 2013 it bought Elder Pharma’s India branded business, followed by buying the dermaceutical business of Zyg Pharma in 2015 and API (active pharma ingredient) plant of Glochem Industries in 2016. Among other major deals it bought the India branded business of Unichem in 2017. Its last major buy was the acquisition of skin care products of Curatio Healthcare in 2022.

 

Torrent Pharma is focused on the domestic market and draws around 55 per cent of its consolidated revenue from the domestic formulations business. India sales grew 13 per cent in FY25 to touch ₹6,393 crore.

 

Torrent has a strong presence in the cardiovascular, gastro-intestinal and neurology segments. JB too has strong cardiac and gastro brands like Cilacar, Metrogyl, Rantac etc. Torrent is also working on launching GLP-1 products as a day-one launch in FY26. 

 

Gaurav Trehan, co-head of Asia Pacific and head of Asia Pacific private equity, KKR, and chief executive officer (CEO), KKR India, said that “JB Pharma’s transformation under our stewardship is a testament to KKR’s ability to scale high-quality companies”.

 

Nikhil Chopra, CEO and wholetime director of JB Pharma, pointed out over the past five years the company had emerged as one of India's fastest growing pharmaceutical players.

 

JB Pharma posted 12 per cent growth in revenue in FY25 to ₹3,918 crore.

 

KKR Private Equity has invested $2 billion in India in 2024 and recently invested $600 million in the Manipal group via its private credit arm. 

Transaction structure 

> Torrent to acquire 46.39% via SPA, with potential for an additional 2.80%

> This will trigger mandatory 26% open offer