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

Ahmedabad-based drug maker Torrent Pharmaceuticals Torrent Pharmaceuticals Ltd has signed a share purchase agreement to acquire an additional 2.41% stake in J.B. Chemicals & Pharmaceuticals Ltd from employees for a total cash consideration of Rs 620 crore, or Rs 1,600 per share, the company said in an exchange filing.

The acquisition involves 38.75 lakh equity shares, which the employees are selling after exercising their stock options. The transaction will be completed after Torrent finalises its acquisition of a controlling stake in J.B. Chemicals, subject to shareholder and regulatory approvals, the company said in a filing with stock exchanges.

Torrent also said it may acquire the remaining 0.39% stake (around 6.24 lakh shares) from other employees at the same price, and would disclose any such deal separately.

Torrent’s big-bang pharma buy

This additional stake purchase follows Torrent Pharma’s blockbuster announcement on June 30, when it said it would acquire a majority 46.39% stake in JB Chemicals from its promoter, Tau Investment Holdings, for Rs 11,917 crore. The deal is set to become India’s second-largest pharma deal ever, after Sun Pharma’s 2015 acquisition of Ranbaxy.

Following the acquisition, JB Chemicals will be merged into Torrent, with shareholders of JB Pharma receiving 51 shares of Torrent for every 100 shares held.

Strategically, the acquisition gives Torrent access to JB’s strong brands in chronic therapies and entry into new segments like ophthalmology, while also expanding its footprint in contract development and manufacturing (CDMO). JB Chemicals exports to over 40 countries and operates eight manufacturing units, including a lozenge-focused facility.

The deal is expected to strengthen Torrent's leadership in the Indian pharmaceutical market (IPM), enhance international scale, and diversify its therapeutic portfolio. Torrent, a Rs 11,500 crore company and part of the Rs 45,000 crore Torrent Group, is already among the top five Indian pharma players in cardiovascular, gastrointestinal, CNS, and cosmo-dermatology segments.