In a major acquisition within the pharmaceutical sector, Torrent Prescription drugs Ltd on Sunday entered into definitive agreements to accumulate controlling stake of 46.39 per cent stake in J. B. Chemical substances and Prescription drugs from international funding agency KKR for Rs 11,917 crore at a value of Rs 1,600 per share.
Torrent will even make a compulsory open provide to accumulate one other 26 per cent of JB Pharma shares from public shareholders at an open provide value of Rs 1,639.18 per share. After the open provide, the overall price of acquisition will come to Rs 13,556 crore.
The acquisition was made at an fairness valuation of Rs 25,689 crore (on totally diluted foundation), adopted by a merger of the 2 entities. The transaction marks a major step in Torrent’s ambition to create a future-ready, diversified healthcare platform combining a deep power section heritage with rising worldwide CDMO (contract improvement and manufacturing group) capabilities.
As per the approval given by the board of administrators of each firms, after the merger of JB Pharma with Torrent, each shareholder holding 100 shares in JB Pharma will obtain 51 shares of Torrent.
Along with this, Torrent has additionally expressed its intent to accumulate as much as 2.80% of fairness shares from sure workers of JB Pharma on the similar value per share as KKR. The merger between Torrent and JB Pharma can be by way of a scheme of association.
KKR, a US-based non-public fairness large, acquired about 54 per cent stake in JB Chemical substances and Prescription drugs, one of many oldest pharma firms in India, for Rs 3,100 crore in July 2020. It acquired the stake from the founding Mody household at a purchase order value of Rs 745 per share and made an open provide for an extra 26 per cent of the corporate.
Samir Mehta, Govt chairman, Torrent, stated: “Torrent’s deep India presence and JB Pharma’s quick rising India enterprise, mixed with the CDMO and worldwide footprint gives immense potential to scale each income and profitability. This strategic alignment furthers our purpose of strengthening our presence within the Indian pharma market, and construct a bigger diversified international presence. Furthermore, the CDMO platform supplies a brand new long-term avenue of progress for Torrent.”
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Torrent Pharma, which has a market valuation of Rs 1.13 lakh crore, closed greater by 3.68 per cent at Rs 3344.40 on the BSE on Friday. JB Chemical substances, with a market capitalisation of Rs 28,080 crore, reported a income of Rs 3,722 crore in FY25. Its shares closed 2.72 per cent greater at Rs 1799.35 on the BSE.
Torrent Pharma, with annual revenues of greater than Rs 11,500 crore, is the flagship firm of the Torrent Group, with group revenues of Rs 45,000 crore. It’s amongst the highest 5 within the therapeutics segments of cardiovascular (CV), gastro Intestinal (GI), central nervous system (CNS) and cosmo-dermatology. It’s a specialty-focused firm with 76 per cent of its revenues in India from power and sub- power therapies. It has presence in 50 plus nations. Torrent has 8 manufacturing services, of which 5 are USFDA accepted.
JB Pharma is likely one of the quickest rising pharmaceutical firms in India and a number one participant within the hypertension section. Moreover its robust India presence, which accounts for majority of its income, its different two dwelling markets are Russia and South Africa. In India, the corporate has six manufacturers among the many prime 300 IPM manufacturers within the nation. It has eight state-of-the-art manufacturing services in India together with a devoted manufacturing facility for lozenges
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