Torrent Pharma Shares Rise, JB Chemicals' Slump after Rs 11,917-crore Stake Buy News

In a deal that is expected set to shake up India’s pharmaceutical landscape, Torrent Pharmaceuticals has announced the acquisition of an over 49% stake in JB Chemicals & Pharmaceuticals, paving the way for a full-scale merger between the two companies. The move is poised to position Torrent into the spot of top five pharmaceutical players in the country, according to a report by CNBC-TV18. JB Chemicals is primarily engaged in the business of manufacturing and marketing of pharmaceutical formulations.

Shares of Torrent Pharma rose as much as 4% to their high during early trade on the National Stock Exchange on June 30. On the other hand, JB Chemicals shares plummeted up to 7% on the NSE by 09:32 am.

Torrent said that it will pick up a 46.5% stake from promoter Tau Investment Holdings Pte. Ltd. at ₹1,600 per share, amounting to a whopping consideration of ₹11,917 crore in all-cash. An additional 3% stake will be acquired from JB Chemicals’ employees. As per regulatory norms, this transaction will trigger an open offer for 26% of the company at a slightly higher price of ₹1,639.18 per share. While the initial deal is at an 11% discount to Friday's close of JB Chemicals shares, the open offer price is at a discount of 9%.

After the scheme becomes effective, the said entities will merge and as per the share exchange ratio approved by the board, every shareholder holding 100 shares in JB Pharma will receive 51 shares of Torrent.

A Strategic Prescription for Growth

The acquisition gives Torrent Pharma more than just a boost in size, it is poised to deliver access to JB Chemicals’ robust India franchise. Apart from this, JB Chemicals has international presence across Russia, Dubai, South Africa, and the Philippines. JB Chemicals had recorded a consolidated turnover of ₹3,918 crore in FY25, up from ₹3,484 crore in FY24.

The deal also gives Torrent Pharma an entry into the contract development and manufacturing organisation (CDMO) space—an area with strong growth potential.

Torrent’s Pharma M&A Trail Continues

This is not Torrent’s first bold bet. The pharmaceutical company has been steadily building its India portfolio through previous acquisitions of Elder Pharma, Unichem Labs, and Curatio Healthcare. The JB Chemicals merger adds further muscle to its operations.

“We are pleased to have on board the JB Pharma heritage and build on the platform for the future,” Samir Mehta, executive chairman of Torrent, said. “Torrent’s deep India presence and JB Pharma’s fast growing India business, combined with the CDMO and international footprint offers immense potential to scale both revenue and profitability.”