Torrent Pharma Shares in Focus: Announced Acquisition of Additional 2.41% Stake in JB Chemicals

On July 4, 2025, Torrent Pharma shares are in focus, reaching a day high of ₹3,359.95 at 09:30 AM after opening at ₹3,336.40 on BSE. The gain in Torrent Pharma shares follows the company’s announcement about the acquisition of a majority stake in JB Chemicals and Pharmaceuticals, marking a pivotal move that positions it as India’s second most-valued pharmaceutical company.

On July 3, 2025, Torrent Pharma announced that it has signed a share purchase agreement with JB Chemicals for the acquisition of up to 38,75,056 equity shares, representing a 2.41% stake on a fully diluted basis. The acquisition will be done for a cash consideration, at a price of ₹1,600 per share, aggregating to a total consideration of approximately ₹620,00,89,600.

Stake Acquisition Details: Promoters and Employees

In the first leg of the transaction, Torrent will acquire a 46.39% stake from JB Chemicals’ promoters for ₹11,917 crore. In addition, the company plans to purchase another 2.80% stake from certain employees, priced at ₹1,600 per share, amounting to ₹719 crore.

Following the majority acquisition, Torrent will initiate an open offer to acquire an additional 26% stake from public shareholders. This will be conducted at a price of ₹1,639.18 per share, bringing the total open offer value to approximately ₹6,842.8 crore, in compliance with SEBI’s takeover regulations.

Valuation and Deal Structure

This strategic acquisition is valued at an equity valuation of ₹25,689 crore (fully diluted basis) and is the second-largest deal ever in India’s pharmaceutical sector. According to a joint statement by Torrent Pharmaceuticals and global investment firm KKR, the deal will be carried out in two phases, culminating in a merger of the two companies.

Also Read: Torrent Pharma Shares in Focus: Announced Acquisition of Controlling Stake in JB Chemicals

Conclusion

By integrating JB Chemicals into its portfolio, Torrent Pharmaceuticals not only strengthens its market presence but also reinforces its ambition to lead innovation and growth in both domestic and international pharmaceutical markets.

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