Torrent Pharma revives talks to acquire KKR’s stake in JB Pharma; deal expected soon

Mumbai, June 28, 2025 — In a move that could significantly reshape the mid-cap Indian pharmaceutical landscape, Torrent Pharmaceuticals has reignited discussions to acquire private equity giant KKR & Co.’s stake in JB Chemicals & Pharmaceuticals (JB Pharma), according to people familiar with the matter. The transaction, which has been under the radar for months, is now in an advanced stage and could be finalized in the coming weeks.

This acquisition, if completed, could be one of the largest in the Indian pharma sector in recent times and will further consolidate Torrent Pharma’s position in the high-margin chronic therapy segment.

The Deal at a Glance

KKR currently holds a 54% stake in JB Pharma, a Mumbai-based drug maker best known for its cardiovascular and gastrointestinal product lines. The stake is valued at over ₹15,000 crore ($1.8 billion) based on JB Pharma’s current market capitalization. Sources indicate that Torrent is considering acquiring either the entire stake or a substantial controlling interest.

Discussions are reportedly centered around valuation, regulatory clearances, and strategic synergies. If all goes as planned, a formal announcement could be made within the next few weeks.

Strategic Fit for Torrent Pharma

Torrent Pharmaceuticals, a leading player in chronic and specialty therapies, has been aggressively scouting for acquisition targets to boost its domestic and international market presence. JB Pharma’s strong footing in India and emerging markets aligns with Torrent’s long-term expansion goals.

"JB Pharma offers a complementary product portfolio and distribution strength that Torrent can effectively leverage to scale its operations and enhance profitability," said Ritesh Patel, a pharma sector analyst at ICICI Securities.

The acquisition would also strengthen Torrent’s leadership in cardiovascular and gastrointestinal therapies—two of the fastest-growing therapeutic areas in India.

KKR’s Exit Strategy

KKR acquired its controlling stake in JB Pharma in 2020 for around ₹3,100 crore and has since overseen a transformation in the company’s operations, focusing on brand building, cost optimization, and export growth. The private equity firm has been evaluating an exit over the past year as part of its investment cycle, with plans to redirect capital toward newer opportunities.

"This deal would mark a lucrative exit for KKR, yielding almost a 4x return on its original investment," said Anisha Rawat, Managing Director at Invictus Advisors. “It also highlights the maturing Indian healthcare space as a private equity success story.”

Market Context and Competitive Dynamics

The Indian pharmaceutical sector has seen increased M&A activity in 2024-25, driven by global supply chain realignments, demand for specialty generics, and private equity exits. Earlier this year, Advent International divested its stake in Suven Pharma to Cipla, and Temasek pared down its holding in Mano Pharma.

Amid tightening regulatory scrutiny in the US and volatile pricing in Europe, domestic growth remains a key focus for Indian pharma companies. JB Pharma reported ₹3,119 crore in consolidated revenue in FY24, with robust growth in branded formulations and international business.

Investor Reaction and Market Buzz

News of the potential deal sent JB Pharma shares up by 4.2% intraday on the BSE on Friday, closing at ₹1,827. Torrent Pharma also saw a mild uptick of 1.1%, signaling investor optimism about potential revenue and synergy gains.

"The market sees this as a win-win. Torrent’s scale combined with JB Pharma’s brand equity can unlock new value streams," said Mohan Reddy, senior analyst at Axis Capital. "However, deal financing and integration risks will need to be managed prudently.”

If Torrent funds the acquisition through a mix of internal accruals and debt, it could temporarily impact the company’s leverage ratios, analysts caution.

Regulatory and Financing Considerations

The acquisition will be subject to approval from the Competition Commission of India (CCI) and possibly clearance under FDI guidelines in the pharma sector. Industry insiders believe that both parties have already initiated the due diligence process, and legal advisors are working on structuring the transaction.

Torrent may also seek bridge financing or collaborate with strategic investors or global financial institutions to partly fund the deal.

Outlook for Investors

From an investor standpoint, this move signals Torrent’s strategic intent to scale up non-organically, diversify revenue sources, and drive higher margin growth. While short-term volatility in stock prices may occur due to deal-related uncertainty, analysts maintain a positive medium- to long-term view.

"Assuming a successful closure and smooth integration, Torrent Pharma could see a 12-15% EPS accretion over the next two fiscal years," predicted Neha Agrawal, pharma analyst at JM Financial.

As the Indian pharma sector continues to evolve through consolidation and innovation, Torrent Pharma’s renewed bid for JB Pharma underscores a trend toward bold, strategic bets. Should this deal materialize, it would not only reshape Torrent’s business dynamics but also reflect investor confidence in India’s branded generics and specialty pharma play.

All eyes are now on the final leg of negotiations between Torrent and KKR, with an official announcement anticipated soon.