Billionaire Mehta Brothers Pursue Investment in Indian Pharmaceutical Company JB Pharma for $1.4 Billion Acquisition
In a significant move for the Indian pharmaceutical sector, Torrent Pharmaceuticals has announced the acquisition of KKR's 46.39% controlling stake in JB Chemicals and Pharmaceuticals (JB Pharma) for approximately 119 billion rupees ($1.4 billion USD). This strategic move aims to create a future-ready, diversified healthcare platform that combines chronic care expertise with contract development and manufacturing organization (CDMO) capabilities.
The acquisition values JB Pharma at around 256.8 billion rupees ($3 billion USD) on a fully diluted basis. The deal, however, is subject to regulatory approvals from SEBI, CCI, and NCLT.
The transaction will occur in two phases. Firstly, Torrent will purchase 46.39% equity from KKR for approximately INR 11,917 crores ($1.4 billion USD). Secondly, Torrent will make a mandatory open offer to acquire up to 26% of JB Pharma’s shares from public shareholders, along with an additional 2.8% from certain employees, at a pre-defined price. After the acquisition, JB Pharma shareholders will receive 51 Torrent shares for every 100 JB Pharma shares they hold.
For Torrent Pharmaceuticals, this acquisition expands its portfolio by incorporating JB Pharma’s fast-growing domestic business and pipeline of chronic care brands. It also enters the CDMO segment, gaining international contract manufacturing capabilities. The merger is expected to position Torrent to scale both revenue and profitability significantly, building a more diversified healthcare platform.
JB Chemicals and Pharmaceuticals, founded in 1976, specializes in producing drugs for gastroenterology, hypertension, dermatology, and diabetes. By becoming part of a larger, more resourceful group, JB Pharma is expected to benefit from expanded growth potential. The merger is expected to enhance healthcare access across markets by combining strengths with Torrent’s established presence. Shareholders will receive Torrent equity, which could offer enhanced liquidity and value creation opportunities.
Executives from both companies have welcomed the transaction. Samir Mehta, Executive Chairman of Torrent Pharma, highlighted the potential to build a platform for the future, while JB Pharma’s CEO, Nikhil Chopra, emphasized the combination’s ability to broaden healthcare reach.
The Torrent Group, founded by their late father, Uttambhai Nathalal Mehta, has been a significant player in the Indian pharmaceutical sector. The Mehta brothers, the controlling shareholders of Torrent Pharma, have an estimated net worth of $16.3 billion, according to Forbes Asia.
The drug business of JB Pharma, now under Torrent Pharma, is fast-growing. In the year to March 2025, JB Pharma reported a net profit that climbed 20% to 6.6 billion rupees. No new information about the timeline for the completion of the transaction was provided.
This acquisition represents a significant consolidation in the Indian pharmaceutical sector, with Torrent integrating a prominent CDMO and therapeutic brand player into its fold, which is expected to drive growth and diversification for both firms.
- The acquisition of KKR's controlling stake in JB Pharma by Torrent Pharmaceuticals, valued at approximately 119 billion rupees, will not only increase Torrent's portfolio but also enable the company to enter the contract development and manufacturing organization (CDMO) segment with international capabilities. The finance for this deal will be sourced from their own resources.
- post-acquisition, JB Pharma's CEO, Nikhil Chopra, along with Samir Mehta, Executive Chairman of Torrent Pharma, expects the merged entities to create a future-ready, diversified healthcare platform, broadening healthcare reach across markets and offering enhanced liquidity and value creation opportunities for shareholders.
