Mankind Pharma, Dr Reddy's, Torrent Pharma in race to acquire JB Pharma: Report

JB Pharma's March quarter profit jumped 43 percent to Rs 126.2 crore.

Mankind Pharma, Dr Reddy's and Torrent Pharma are among the companies which have shown interest in acquiring JB Chemicals and Pharmaceuticals (JB Pharma) from global private equity major KKR, the Economic Times has reported.

A few big private equity funds that considered the deal have been discouraged by the high valuation, the report said.

The first round of bids is expected in the next few weeks and Kotak Mahindra Bank is running the sale mandate.

Moneycontrol couldn't verify the report independently.

Moneycontrol was the first to report, in April, that KKR was in early discussions with Torrent Pharmaceuticals Ltd for selling its majority stake in its portfolio company JB Pharma.

KKR acquired a 54 percent stake in JB Pharma in July 2020 from its promoters for approximately Rs 3,100 crore. It acquired the stake from founders the Mody family at Rs 745 a share.

JB Pharma’s market capitalisation stood at Rs 25,598.61 crore.

The stake sale will result in an open offer for up to 26 percent of the company’s stake held by public shareholders.

JB Pharma on May 17 reported a 43 percent jump in net profit at Rs 126.2 crore for the March quarter, up from Rs 88 crore in the year-ago period. Revenue came in at Rs 861.7 crore, up 13 percent from the previous year.

Established in 1976, JB Pharma produces a range of pharmaceuticals in areas such as gastroenterology, hypertension, dermatology and diabetes. Its portfolio includes flagship brands such as Cilacar, Metrogyl, Nicardia and Rantac.

On May 24 at 10.55 am, JB Pharma was trading almost a percent low at Rs 1,665.20.