Torrent Pharmaceuticals, a leading player in the generic pharma industry, is reportedly planning to raise up to $3 billion from international lenders to acquire a controlling stake in JB Chemicals & Pharmaceuticals Ltd. This move is part of Torrent’s broader strategy to expand its market presence.
According to a report by Bloomberg on August 13, it is considering multiple financing options, including dollar and local currency bonds, at some point with involvement from major financial institutions such as Barclays Plc, Deutsche Bank AG, and Standard Chartered Plc.
Earlier this year, Moneycontrol reported that private equity firm KKR was in talks to sell its majority stake in JB Chemicals to Torrent Pharma. KKR had initially acquired a 54 percent stake in JB Pharma for about ₹3,100 crore. Its stock has surged 21 percent this year; JB Chemicals is trading at a market capitalization of around ₹30,000 crore. Torrent Pharma’s stock surged 46 percent in 2024.
JB Chemicals was established in 1976 and focused on pharmaceutical products related to gastroenterology, hypertension, dermatology, and diabetes. Its flagship brands include Cilacar, Metrogyl, Nicardia, and Rantac. The company has a global presence because of its selling formulations in more than 40 countries around the globe, including the US. This is one of the top five manufacturers globally for the making of medicated and herbal lozenges.
If the deal materializes, it could lead to an open offer for as much as 26 per cent of JB Chemicals’ shares held by public shareholders. Neither Torrent Pharma nor KKR has commented on the matter officially.
Of course, such an acquisition may help Torrent Pharma strengthen its positioning in the global pharma market.
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Source: Moneycontrol
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