Torrent Pharma shares surge 4% after agreeing to acquire JB Chemicals for Rs 11,900 crore

Shares of Torrent Pharmaceuticals surged 3.9% to an intraday high of Rs 3,474.60 on BSE on Monday, June 30, after the company agreed to buy a controlling stake in J.B. Chemicals & Pharmaceuticals Ltd in a major acquisition worth Rs 11,917 crore.

In a board meeting held on June 29, Torrent Pharma approved a multi-step transaction to acquire a majority stake in JB Chemicals. The acquisition comprises the following:

- Share Purchase Agreement (SPA): Torrent will acquire 7.44 crore equity shares, representing 46.39% of JB Chemicals' fully diluted equity share capital, from its promoter, Tau Investment Holdings Pte Ltd, at Rs 1,600 per share, amounting to approximately Rs 11,917 crore, subject to shareholder and regulatory approvals.


- Potential Employee Acquisition: Torrent may further acquire up to 44.99 lakh equity shares (2.80%) from certain employees at a price not exceeding Rs 1,600 per share, through employee stock options.

- Open Offer: Torrent has also proposed an open offer to public shareholders to acquire up to 4.17 crore shares (26.00%) of the expanded capital at Rs 1,639.18 per share, in accordance with SEBI’s Takeover Regulations.

Post-acquisition, Torrent will gain promoter status and a controlling interest in JB Chemicals, positioning it to expand its product offerings and leverage synergies between the two firms.

JB Chemicals, incorporated in 1976, is a publicly listed company with a consolidated turnover of Rs 3,918 crore and a net worth of Rs 3,433 crore as of March 31, 2025. The company has consistently maintained strong financial performance over the last three years.

The proposed acquisition is subject to approvals from the Competition Commission of India (CCI), shareholders, and other statutory bodies. Torrent Pharma anticipates completing the deal within six months.

On Friday, shares of Torrent Pharmaceuticals closed 3.7% higher at Rs 3,344.40 on BSE.

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