Share price of this Pharma stock fell by nearly 3% on NSE to close at Rs. 1,595, compared to its previous closing price of Rs. 1,643.80, after the company’s promoter said that it is exploring selling its controlling stake in the company.
With a market capitalisation of Rs. 24,746.64 crores, the shares of J B Chemicals and Pharmaceuticals Ltd. hit a lower circuit at Rs. 1,584 on Wednesday, down by nearly 3.63 percent.
In the last one year, the company has delivered positive returns of about 60.15 percent and more than 11.85 percent of returns in the last six months. So far in 2024, it has given negative returns of around 1.28 percent.
The fluctuations in the share price were observed after the promoter of the company, KKR and Co., was considering selling its 53.8 percent stake in J B Chemicals and Pharmaceuticals, according to Moneycontrol.
A leading global investment firm, KKR manages a variety of alternative asset classes, including private equity, energy, infrastructure, real estate and credit, in collaboration with partners that manage hedge funds.
Back in the year 2020, the US Private equity firm acquired a majority 53.83 percent stake in the company for a total value of Rs. 12,200 crores.
This was said to be the most successful PE buyout within the Indian pharmaceutical sector, with the investment of KKR rising by over 4 times.
The Private equity firm plans to hire financial advisers to help analyse the sale of its 53.8 percent of equity shares in JB Chemicals. The discussions are in their early stages, and no final conclusions have been reached.
In terms of financials, the revenue from operations of JB Chemicals reduced by nearly 4.2 percent QoQ from Rs. 882 crore in Q2 FY23-24 to Rs. 845 crore in Q3 FY23-24, accompanied by a decrease in the net profit by 11.25 percent QoQ, from Rs. 151 crore in Q2 FY23-24 to Rs. 134 crore in Q3 FY23-24.
Established in 1976, J B Chemicals and Pharmaceuticals is one of India’s leading Indian pharmaceutical companies.
The company is engaged in the business of manufacturing a wide range of speciality products, including tablets, injectables, creams & ointments, lozenges, herbal liquids and capsules.
Written by Shivani Singh
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