look news india
New Delhi – Global Private Equity Giant KKR (KKR) is now preparing to reduce its stake in India’s Pharma Company JB Chemicals & Pharmaceuticals. For this, KKR has launched a block deal with a base size of about $ 200 million. This step is considered part of the company’s strategic plan.
Preparation to sell 7% stake, 3.5% additional option also included
A source close to the case informed that KKR is planning to sell about 7 percent stake under this deal. Apart from this, the company has also kept the option open to sell 3.5 percent additional stake, whose potential value has been estimated at around $ 100 million.
Who is the promoter? Tau investments have control
According to the latest exchange data, the unit of funds managed by KKR Tau Investments Holdings PTE Ltd holds 53.66 percent stake in JB chemicals. This fund is the promoter of the company and now efforts are being made to reduce this stake in a phased manner.
Investment banker of block deal
This block deal includes India’s leading investment banker – Kotak Mahindra Capital, Jefferies, IIFL Capital and Avends Capital. According to sources, the floor price has been fixed at Rs 1,625 per share, which has been kept with some discounts from the market price to attract the interest of investors.
Company performance in the stock market
On March 26, JB chemicals on BSE closed nearly 1% to close at ₹ 1,703.40. If you look at the recent figures:
- The last 2 weeks have recorded a 13% increase.
- It has come down 9% since the beginning of 2025.
- But in the last 2 years, more than 70% has been strengthened.
- The company’s current market cap is around ₹ 26,500 crore.
Attempted to sell stake in the past too
KKR has also tried to fully exit JB chemicals earlier. He interacted with strategic buyers and other private equity firms, but no deal was finalized due to differences over valuations.
Significantly, in July 2020, KKR bought about 54% stake in JB chemicals for around ₹ 3,100 crore.
Financial Performance: December Quartage Status
The company performed brilliantly in the October-December 2024 quarter.
- Standalone Revenue is: ₹ 913.51 Crore
- Pure profit was: ₹ 156.39 crore
- Earnings per share (EPS): ₹ 10
Talking about the entire financial year 2024:
- Total Revenue: ₹ 3,298.64 Crore
- Net Profit: ₹ 543.36 Crore
- EPS: ₹ 35
Indication for investors
KKR’s partial exit may indicate that the company is reinforcing its holdings. However, the strong financial position of JB chemicals and the tremendous performance of the stock over the years show that the company still has adequate growth possibilities.