New Delhi, July 01, 2025: Torrent Pharmaceuticals Ltd is set to become India’s fifth-largest pharmaceutical company by secondary sales following its acquisition and planned merger with JB Chemicals & Pharmaceuticals Ltd (JB Pharma) in one of the largest deals in the Indian pharma sector valued at Rs 11,917 crore.
Torrent is the seventh-largest pharma company in India, with domestic sales of Rs 7,982 crore, according to IQVIA and SMSRC FY25 data.
The Ahmedabad-based drugmaker has signed a definitive agreement to acquire a 46.39 percent stake in JB Pharma at Rs 1,600 per share in cash. The transaction will trigger a mandatory tender offer for an additional 26 percent stake at Rs 1,639.18 per share. Torrent also intends to acquire up to 2.8 percent equity from JB Pharma employees at the same price offered to private equity firm KKR, which is exiting its investment.
Post-acquisition, Torrent Pharma’s market share will increase from 3.4 percent to 4.6 percent (Rs 10,731 crore) in the Indian pharmaceutical market, making it the fifth-largest by secondary sales, as per IQVIA and SMSRC FY25 data. The merged entity, with 4,93,548 prescriptions, will rank fourth in India on this metric.
Pharma powerhouse
The acquisition and subsequent merger will create a pharmaceutical powerhouse with combined revenues exceeding Rs 15,000 crore and EBITDA of over Rs 4,800 crore, based on FY25 pro forma figures.
“This strategic combination significantly strengthens our presence in high-growth therapeutic areas such as cardiology and gastroenterology, while enhancing our brand equity and operational synergies,” Torrent Pharma said in its investor presentation on Monday.
JB Pharma, known for its strong domestic growth and international footprint across 40 countries, has delivered a revenue and EBITDA CAGR of 18 percent over FY21–FY25. Its India business contributes 58 percent to total revenue, with six brands in the IPM Top 300 and three in the Top 25 cardiology segment according to the reports published in moneycontrol.com.
Torrent has a diversified global presence with key markets in the US, Brazil, and Germany. It has posted a 10 percent revenue CAGR over the same period.
The merger, which will see Torrent as the surviving listed entity, is subject to approvals from the Competition Commission of India, SEBI, stock exchanges, shareholders, and the National Company Law Tribunal. The process is expected to take 15–18 months.
The share swap ratio for the merger has been set at 51 Torrent shares for every 100 JB Pharma shares, based on valuations by Ernst & Young and BDO, with ICICI Securities providing a fairness opinion.
