Torrent Pharma Set to Snap Up JB Pharma in INR 25,689 Crore Mega Deal with KKR

According to an exchange filing, Gujarat-based pharmaceutical mammoth Torrent Pharma declared on June 29, 2025, that it has finalised deals with international investment titan KKR to purchase a majority share in JB Chemicals.

According to the possible purchase details, the company intends to buy J. B. Chemicals and Pharmaceuticals (JB Pharma) at a fully diluted equity valuation of INR 25,689 crore. The two businesses will then merge.

The international behemoth employs Tau Investment Holdings, the promoter company of JB Pharma, an investment vehicle owned by KKR, to acquire stock in the pharmaceutical giant. Tau Investment is KKR & Co. Inc.'s separate legal company. As of June 29, 2025, Tau Investment held 47.84% of J. B. Chemicals and Pharmaceuticals, according to BSE records.

Deal to be Completed in Two Phases

There will be two stages to the JB Pharma takeover agreement. Through a share purchase agreement (SPA), Torrent Pharma would purchase a 46.39% stake in the first phase for a total of INR 11,917 crore, or INR 1,600 per share.

The business will launch a mandatory open offer to purchase up to 26% of JB Pharma shares from public stakeholders at an open offer price of INR 1,639.18 per share as an extension of the first phase. 

At the same price per share as KKR selling its position, Torrent also intends to purchase an additional 2.80% of JB Pharma from certain workers who own stock in the business. Additionally, the business revealed its intentions to merge Torrent with JB Pharma through a plan that would give 51 shares of Torrent Pharmaceuticals to each shareholder who owns 100 shares of JB Pharma.

"Torrent Pharma is happy to have on board the JB Pharma heritage and build on the platform for the future," said Samir Mehta, the company's executive chairman, in an official statement.

 He further added that together with the CDMO and global reach, Torrent's extensive presence in India and JB Pharma's rapidly expanding India business present enormous opportunities to grow both revenue and profitability.

The Acquisition will Strengthen Torrent’s Market Share

Through the acquisition, Torrent will increase its market share in the IPM and get long-term access to the CDMO industry. Additionally, it would provide more scalability and consolidation in important global markets.

 Co-Head of Asia Pacific, Head of Asia Pacific Private Equity, and CEO of KKR India, Gaurav Trehan, stated that the growth of JB Pharma under KKR's leadership is evidence of the company's capacity to grow top-tier businesses. Adding further, he stated that KKR is honoured to have worked with the management of JB Pharma.