JBCHEPHARM

expects to recover its investment in JB Chemicals & Pharmaceuticals Ltd. within 2.5 years from the point of taking control, which is expected between January and March 2026, executives said during an investor call detailing the company’s largest-ever acquisition. The executives said the transaction will be primarily debt-funded, with Torrent targeting a cost of borrowing below 8%. “If FY27 I am between let’s say 1.8 to 2.8 [times net debt/EBITDA], let’s take a mid number of 2.5, then I should be able to repay the debt in maybe 2.5 years’ time, so it’s quite comfortable for me.” The deal includes a ₹11,917 crore cash purchase of a 46.39% stake, a mandatory tender offer for an additional 26%, and an intent to acquire 2.8% from JB employees. Torrent expects to reach a peak leverage of 2.8x by FY27 in a worst-case scenario, but anticipates reducing it to below 0.5x within two years post-merger. “We have multiple funding options, including corporate loans and capital market instruments,” said CFO Sudhir Menon. “The balance sheet is strong, and we don’t foresee the need to tap our approved QIP route.”