Synopsis:
J B Chemicals & Pharmaceuticals Ltd traded steady after Torrent Pharmaceuticals announced an open offer to acquire a 26 percent stake at Rs. 1,639.18 per share, aggregating to Rs. 6,843 crore.
A pharmaceutical stock held firm in early trade after news of a large open offer by Torrent Pharma. Investor sentiment remained cautious, with the stock moving marginally higher intraday.
J B Chemicals & Pharmaceuticals Ltd., with a market capitalization of Rs. 27,040.29 crore, opened at Rs. 1,736.95 against the previous close of Rs. 1,721.60. The stock touched an intraday high of Rs. 1,740, marking a 1.07 percent rise from the previous close.
What’s the News?
Torrent Pharmaceuticals Limited has launched an open offer to acquire up to 4,17,45,264 crore fully paid-up equity shares of face value INR 1/- each from the Eligible Shareholders of J B Chemicals & Pharmaceuticals, representing 26 percent of the expanded share capital. The offer is priced at Rs. 1,639.18 per share, translating into a total cash consideration of Rs. 6,843 crore.
This development follows Torrent’s earlier announcement of acquiring a controlling stake in J B Chemicals from global investment firm KKR in a Rs. 25,689 crore deal on a fully diluted basis. Upon completion, Torrent Pharmaceuticals will emerge as India’s second most valued pharmaceutical company.
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Financial Snapshot
On a sequential basis, revenue rose 15.2 percent to Rs. 1,094 crore in Q1FY26 from Rs. 949 crore in Q4FY25. Operating profit grew 33.2 percent to Rs. 301 crore from Rs. 226 crore, while profit before tax increased 40.9 percent to Rs. 272 crore from Rs. 193 crore. Net profit jumped 38.4 percent to Rs. 202 crore compared to Rs. 146 crore in the previous quarter.
Year-on-year, revenue increased 9.0 percent from Rs. 1,004 crore in Q1FY25 to Rs. 1,094 crore in Q1FY26. Operating profit rose 7.5 percent to Rs. 301 crore from Rs. 280 crore, while profit before tax improved 13.3 percent to Rs. 272 crore from Rs. 240 crore. Net profit registered a 14.1 percent rise to Rs. 202 crore from Rs. 177 crore in the year-ago period.
About the Company
Established in 1976, J B Chemicals & Pharmaceuticals Ltd. is engaged in manufacturing and marketing a broad spectrum of pharmaceutical formulations, herbal remedies, and Active Pharmaceutical Ingredients. Its product portfolio spans tablets, capsules, syrups, lozenges, and injectables across therapeutic areas including respiratory, dermatology, gastroenterology, cardiology, and radiology.
The company has a strong presence in branded generics, exports finished formulations to over 40 countries, including the USA, and operates eight state-of-the-art manufacturing facilities in India, including a dedicated lozenge unit.
Written by – Manan Gangwar
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