New Delhi, Jun 30 (PTI) Shares of J B Chemicals and Pharmaceuticals tumbled over 7 per cent on Monday after Torrent Pharma announced the acquisition of majority stake in the firm in a Rs 19,500-crore deal.
The stock tanked 6.88 per cent to Rs 1,675.45 on the BSE.
At the NSE, the stock dropped 7.12 per cent to Rs 1,673.
However, shares of Torrent Pharma climbed 3.89 per cent to Rs 3,474.60 on the BSE.
Torrent Pharmaceuticals on Sunday announced the acquisition of majority stake in J B Chemicals and Pharmaceuticals in a Rs 19,500-crore deal that will make it India's second most valued pharma company.
Torrent will acquire 46.39 per cent stake from promoters Tau Investment Holdings Pte Ltd (a unit of global investment firm) for about Rs 11,917 crore. It would additionally buy another 2.80 per cent from certain employees of JB Chemicals at the same acquisition price of Rs 1,600 per share (totalling Rs 719 crore).
Post this, it would make an open offer for buying 26 per cent from open market, as per listing norms, at a price of Rs 1,639.18 per share (totalling Rs 6,842.8 crore).
The open offer price is at a discount to Friday's closing price of Rs 1,799.35 apiece for JB Chemicals on the BSE.
This will be the second biggest deal in the pharma sector ever, behind Sun Pharmaceutical Industries' 2015 acquisition of Ranbaxy Laboratories.