Torrent Pharma to acquire additional 2.41% stake in JB Chemicals for ₹620 crore

Torrent Pharmaceuticals Ltd has signed a share purchase agreement to acquire an additional 2.41% stake in J.B. Chemicals & Pharmaceuticals Ltd for ₹620 crore, at ₹1,600 per share. The deal involves the purchase of 38.75 lakh equity shares from JB Chemicals employees, who are selling after exercising their stock options, Torrent said in a stock exchange filing.The transaction will close after Torrent secures regulatory and shareholder approvals for its majority acquisition of JB Chemicals. The company also indicated it may acquire a further 0.39% stake (6.24 lakh shares) from other employees at the same price, with separate disclosures to follow if executed.

This move comes on the heels of Torrent’s major announcement on June 29, where it agreed to buy a 46.39% controlling stake in JB Chemicals

from promoter Tau Investment Holdings for ₹11,917 crore. This acquisition ranks as India’s second-largest pharma deal, after Sun Pharma’s 2015 purchase of Ranbaxy.
Post-deal, JB Chemicals will be merged into Torrent Pharma, with shareholders receiving 51 shares of Torrent for every 100 shares held in JB Chemicals.Strategically, the acquisition enhances Torrent’s presence in chronic therapies and gives it access to JB’s ophthalmology portfolio, along with a stronger base in contract development and manufacturing (CDMO). JB Chemicals operates eight manufacturing units and exports to over 40 countries.

With this move, Torrent Pharma aims to solidify its position in the Indian pharmaceutical market, while boosting global reach and diversifying its therapeutic offerings. Backed by the ₹45,000 crore Torrent Group, the company is already a top player in cardiovascular, gastrointestinal, CNS, and cosmeto-dermatology therapies.

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