Following the Sale of 90 Lakh Shares in a Block Deal, JB Chemicals’ Stock Fell 7%
About 5.8% of JB Chemicals’ equity was sold in a block sale, with KKR, the company’s promoter, most likely the seller. Following a block transaction on the markets, JB Chemicals’ stock fell more than 6% in early trading on March 27. During the block transaction window, up to 90 lakh shares of the business, or 5.78 percent of the total, changed hands.
According to many industry insiders who spoke to News Channel, JB Chemicals, and Pharmaceuticals’ promoter, the international private equity firm KKR has initiated a block sale with a base size of about $200 million to reduce its ownership in the top pharmaceutical company.
The company’s shares were trading at Rs 1,597.05 on the NSE at 9.20 am, down 6.5 percent from the previous session’s closing price. This was the worst one-day decline in four years.
“The goal of the block transaction, which was introduced not long ago, is to sell off about 7% of the company. One of the individuals mentioned above stated, “There is an upsize option to sell an additional 3.5 percent stake worth around $100 million.”
According to the most recent exchange data, Tau Investments Holdings PTE Ltd, an affiliate of funds controlled by KKR, owns 53.66 percent of JB Chemicals. A second individual was added. The investment bankers involved in the deal include Kotak Mahindra Capital, Jefferies, IIFL Capital, and Avendus Capital. The floor price is Rs 1,625 per share.
To sell its whole investment in JB Chemicals and Pharmaceuticals and depart the company, KKR had conversations with private equity firms and strategic suitors in 2025. However, a value discrepancy prevented the talks from moving forward. For about Rs 3,100 crore, KKR agreed to purchase a 54% share in JB Chemicals in July 2020.
