JB Chemicals Share Price Falls 6% After Torrent Pharma Acquisition News

Market Reaction: JB Chemicals Share Price Takes a Hit

On Monday, June 30, JB Chemicals' share price saw a sharp decline, plunging by 6.48% in early trading.

• Opening Price: ₹1,699.00
• Previous Close: ₹1,801.40
• Day's Low: ₹1,684.60

Despite the dip, JB Chemicals has delivered returns of over 370% in the last five years, making it a notable performer for long-term investors.

Meanwhile, Torrent Pharma's share price moved higher in response to the deal announcement.

Main Development: Torrent Pharma Acquires Controlling Stake

Torrent Pharmaceuticals made headlines on Sunday, June 29, by announcing a definitive agreement to acquire a controlling stake in JB Chemicals and Pharmaceuticals.

Key Deal Highlights:

• Equity Purchase: 7.44 Crore shares
• Stake Acquired: 46.39% of JB Chemicals' fully diluted equity
• Purchase Price: ₹1,600 per share
• Total Deal Value: ₹11,917 Crore
• Equity Valuation: ₹25,689 Crore (fully diluted basis)

The deal was executed via a Share Purchase Agreement with Tau Investment Holdings Pte Ltd, the existing promoter of JB Chemicals.

Additional Acquisition Details

Employee Share Purchase Plan

Torrent Pharma also plans to acquire up to 44.99 lakh shares (2.80%) from eligible employees under employee stock options. The purchase price will not exceed ₹1,600 per share.

Open Offer to Public Shareholders

In line with SEBI's Takeover Regulations, Torrent has extended an open offer to public shareholders:

• Shares Offered: 4.17 Crore
• Offer Stake: 26.00% of expanded equity base
• Offer Price: ₹1,639.18 per share

The open offer price stands at a discount to the last closing price of ₹1,801.40.

Company Overview: JB Chemicals & Torrent Pharma

JB Chemicals and Pharmaceuticals

• Known for a strong global footprint and consistent growth.
• Has rewarded long-term shareholders with substantial gains over the last five years.
• Involved in manufacturing branded and generic pharmaceutical formulations.

Torrent Pharmaceuticals

• A prominent player in India's pharmaceutical industry.
• The acquisition will help Torrent expand its product line and leverage operational synergies.

Regulatory Approvals Pending

The entire deal is subject to approvals from the following:

• The Competition Commission of India (CCI)
• Shareholders of both companies
• Other necessary regulatory bodies

Torrent Pharma expects to close the transaction within six months, as announced by the company.

Summary: What's Happening with JB Chemicals Share Price?

• JB Chemicals' share price fell 6.48% following the deal announcement.
• Torrent Pharma to acquire 46.39% stake for ₹11,917 Crore.
• An open offer has been launched at ₹1,639.18 per share for public shareholders.
• The deal includes potential employee share buy and regulatory approvals.
• Following the acquisition, Torrent Pharma will become the new promoter of JB Chemicals.