Torrent Pharma Seeks to Raise $3 Bn to Buy KKR’s Stake in JB Chemicals

Prominent financial institutions such as Barclays Plc, Deutsche Bank AG, and Standard Chartered Plc have been approached to facilitate the funding, according to the sources.

Torrent Pharmaceuticals has initiated efforts to raise up to $3 billion from global banks to acquire a controlling stake in JB Chemicals & Pharmaceuticals.

This strategic move involves securing financing to potentially purchase KKR & Co's 53.8% stake in JB Chemicals, as Bloomberg News reported on August 13 citing people familiar with the matter.

Further, the Indian drugmaker is exploring various financing options, including both dollar and local currency bonds.

Prominent financial institutions such as Barclays Plc, Deutsche Bank AG, and Standard Chartered Plc have been approached to facilitate the funding, according to the sources.

Founded in 1976, J B Chemicals and Pharmaceuticals also known as JB Pharma is one of India’s leading pharmaceutical companies. It focuses on supplying affordable, quality products, both in India and international markets.

JB Chemicals has witnessed a robust performance this year, with its shares appreciating by approximately 20%, resulting in a market capitalization of around $3.6 billion.

Despite the ongoing deliberations regarding the stake acquisition, no definitive decisions have been made, and other potential bidders may still express interest in acquiring the stake.

Reportedly, Torrent Pharmaceuticals has been engaged in discussions to acquire the US private equity firm’s stake in the company.

Founded by UN Mehta in 1959, Torrent Pharmaceuticals is an Indian pharmaceutical company headquartered in Ahmedabad. It aims to provide affordable and quality medicines to people across the globe. Currently, the company has a presence in over 50 countries worldwide.

Torrent makes branded and generic drugs. The dosage forms include tablets, capsules, and extended-release formulations. India, the US, Germany, and Brazil are among its major markets.

In a similar development, last month, Mankind Pharma entered into a definitive agreement to acquire a 100% stake in Bharat Serums and Vaccines (BSV) from private equity firm Advent International for an enterprise value of INR 13,630 Cr.

Moelis & Company acted as Mankind Pharma's exclusive financial advisor, and AZB & Partners served as legal counsel. Jefferies LLC and JP Morgan advised Advent International and BSV as financial advisors and Khaitan & Co. as legal counsel.