Shares of JB Chemicals and Pharmaceuticals nosedived as much as 7 percent to Rs 1,673 on June 30 after Torrent Pharmaceuticals acquired a controlling stake in the company from global private equity firm KKR at an equity valuation of Rs 25,689 crore (fully diluted basis).
This marks the second-largest deal in India’s pharma sector, behind Sun Pharma’s 2015 acquisition of Ranbaxy. Moneycontrol was the first to report that KKR was in early talks to sell its stake in JB Pharma to Torrent.
The deal gives Torrent access to JB Pharma’s strong chronic portfolio and opens up new therapeutic areas such as ophthalmology. It also marks Torrent’s entry into the high-potential contract development and manufacturing (CDMO) space, while enhancing its presence in key global markets.
Following the development, Torrent Pharma shares rose 4 percent before quickly paring all gains to trade marginally higher.
