Mankind, Dr. Reddy's et al. in race to buy JB Chemicals

24 May 2024 , 12:01 PM

According to news reports, Mankind Pharma, Dr. Reddy’s Laboratories, and Torrent Pharma are a few companies that have shown interest in purchasing JB Chemicals & Pharmaceuticals from KKR.

The hefty value turned off a few big private equity firms that were considering the purchase, they added, adding that the first round of offers is anticipated in a few weeks. The sale mandate is being managed by Kotak Mahindra Bank.

 

At the close of business on Thursday, TAU Investment, the investment arm of KKR, held 53.78% of JB Chemicals, valued at ₹14,020 Crore, based on the company’s market capitalization of ₹26,070 Crore. The original Mody family sold the stock to KKR for around ₹3,100 Crore, or ₹745 per share in July 2020.

In October 2020, Nikhil Chopra, a Cipla veteran, was appointed JB chief executive by KKR. With a novel goto-market strategy that included therapeutic diversification, increasing medical representatives’ efficiency, cost optimisation, growing huge brands even bigger, chronic therapies, and portfolio acquisitions, he set the Mumbai-based drugmaker on an accelerated growth path.

Mankind is a competitor for the $2 billion valuation of Mumbai-based biopharma company Bharat Serums & Vaccines from private equity Advent in addition to competing for JB Chemicals. It previously teamed up with private equity firm ChrysCapital to bid on the medical equipment manufacturer Healthium Medtech.

For feedback and suggestions, write to us at [e-mail]

For opening a demat account click on: https://www.indiainfoline.com/

For doing stock trading & investments, go to: https://ttweb.indiainfoline.com/trade/Login.aspx

For loans, go to: https://www.iifl.com/