Torrent Pharma may raise up to $3 billion for KKR's stake in JB Chemicals: Report

Torrent Pharma is reportedly seeking funding from international lenders to fund a potential deal with KKR.

Leading generic pharma player Torrent Pharmaceuticals may raise as much as $3 billion from international lenders, in its effort to acquire a controlling stake in JB Chemicals, Bloomberg News reported on August 13 citing people familiar with the matter.

The report added that options before Torrent include dollar as well as local currency bonds, and lenders such as Barclays Plc, Deutsche Bank AG and Standard Chartered Plc may have been tapped for this.

Torrent Pharma has not responded to Bloomberg's request for comment while KKR and JB Chemicals declined to comment. Moneycontrol is yet to independently verify the details.

Moneycontrol had reported in April this year that KKR is in talks with Torrent Pharma to sell its majority stake in JB Chemicals. KKR had acquired a 54 percent stake in JB Pharma from the promoters for approximately Rs 3,100 crore.

Shares of JB Chemicals are higher by 21 percent so far this year, while those of Torrent Pharma are higher by 46 percent so far in 2024.

JB Chemicals' market capitalisation stands at around Rs 30,000 crore, which pegs the value of KKR's stake at over Rs 15,000 crore.

The stake sale will result in an open offer for up to 26 percent of JB Chemicals' stake held by public shareholders.

Founded in 1976, JB Pharma specializes in a diverse range of pharmaceuticals used in gastroenterology, hypertension, dermatology and diabetes. Its flagship brands include Cilacar, Metrogyl, Nicardia and Rantac. JB Pharma has a significant global footprint and exports its formulations to over 40 countries, including the US. JB Pharma is a major player in the medicated lozenges market, ranking among the top five global manufacturers of medicated and herbal lozenges.