As part of the agreement, KKR will acquire its stake from the founding Mody family at a purchase price of Rs745 per share and make an open offer for an additional 26% stake in the company.
As per media reports, foreign ownership for the pharma sector is capped at 74% via automatic route, therefore, KKR’s stake cannot breach 64.9% given FII holding in the stock.
Promoters own a 55.9% stake in the company and whether they can exit completely depends on the success of the open offer.
Promoters have a right to sell their entire stake even after the transaction is completed. If it’s sold to KKR, it will be at Rs745/share.
J B Chemicals & Pharmaceuticals Ltd is currently trading at Rs719, up by Rs3.6 or 0.5% from its previous closing of Rs715.40 on the BSE.
The scrip opened at Rs740 and has touched a high and low of Rs742 and Rs701.45 respectively.