Torrent Pharma to Buy Additional 2.41% Stake in JB Chemicals for ₹620 Crore

4 Jul 2025 , 01:07 PM

Torrent Pharmaceuticals is stepping up its efforts to buy additional stake in J.B. Chemicals & Pharmaceuticals. In its latest move, the company has agreed to purchase an additional 2.41% stake for approximately ₹620 crore.

The transaction involves around 38.75 lakh shares, priced at ₹1,600 each, being offloaded by JB Chemicals employees who recently converted their stock options. Torrent disclosed the deal in a regulatory filing made on Thursday.

This latest purchase is part of a broader strategy to consolidate its position in JB Chemicals, following Torrent’s major announcement just days earlier. On June 29, the company revealed plans to acquire a 46.39% controlling interest in JB Chemicals from Tau Investment Holdings in a deal worth nearly ₹11,917 crore.

The current deal is subject to customary conditions, including regulatory clearances and shareholder approval linked to the larger acquisition. Torrent also mentioned that it may acquire up to 0.39% more roughly 6.24 lakh shares from other JB Chemicals employees at the same price. If that materializes, the company will issue a separate disclosure.

Once completed, this will rank as India’s second-largest pharma M&A deal, second only to Sun Pharma’s acquisition of Ranbaxy in 2015.

As part of the integration, JB Chemicals is expected to merge with Torrent Pharma, under a share swap arrangement. Shareholders of JB will receive 51 shares of Torrent for every 100 shares held.

Beyond the numbers, the acquisition offers strategic advantages. Torrent will gain access to JB Chemicals’ ophthalmology pipeline, a well-established contract manufacturing setup, and a growing presence in chronic care therapies.

JB Chemicals, which operates eight manufacturing plants across India, also exports to more than 40 countries, giving Torrent a wider international footprint.

Torrent, which is part of the ₹45,000 crore Torrent Group, is already a top player in the Indian market with a strong presence in cardiovascular, gastrointestinal, CNS, and dermatological segments. The JB deal is expected to bolster its market position both in India and globally.

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