JB Chemicals shares slump 7% after 90 lakh shares or 5.78% stake change hands in a block deal

Shares of JB Chemicals and Pharmaceuticals tumbled over 7 percent in early trade on March 27 following a large block deal. The transaction, which saw 90 lakh shares or a 5.78 percent stake change hands, triggered selling pressure. As per reports, the deal is part of a broader stake dilution move by global private equity firm KKR, the promoter of JB Chemicals, as it seeks to partially exit the leading drugmaker.

KKR Offloads Stake in Block Deal

According to media reports, KKR launched the block deal with a base size of around USD 200 million, aiming to dilute part of its holding in JB Chemicals. Tau Investments Holdings PTE Ltd, an affiliate of funds managed by KKR, currently holds a 53.66 percent stake in the company, as per the latest exchange data.

As per media reports, the floor price for the block deal was set at ₹1,625 per share, representing a 4.9 percent discount to JB Chemicals’ last closing price. The total deal size was estimated at ₹2,576 crore. Investment bankers managing the transaction included Kotak Mahindra Capital, Jefferies, IIFL Capital, and Avendus Capital.

KKR, which acquired a majority stake in JB Chemicals in July 2020 for around ₹3,100 crore, had previously explored a full exit. In 2025, the private equity firm held talks with both strategic suitors and other PE players to sell its entire stake. However, those discussions did not materialize due to a valuation mismatch.

Stock Price Trend

Following the block deal, JB Chemicals' stock plunged as much as 7.4 percent, hitting an intraday low of ₹1,576.65. The stock is now over 22 percent below its 52-week high of ₹2,029, recorded in August 2024. Meanwhile, it recently touched its 52-week low of ₹1,434.85 earlier this month.

Over the past year, the pharma stock has gained nearly 6 percent. However, it has been under pressure in recent months, declining 2.2 percent in March so far. This follows consecutive monthly losses of 7 percent in February and 4.3 percent in January.

Financial Performance

JB Chemicals reported a 21.6 percent year-on-year rise in its net profit for the December quarter, reaching ₹162.5 crore compared to ₹133.6 crore in the same period last year. Its revenue increased by 14.1 percent to ₹963.5 crore from ₹844.5 crore.

The company's EBITDA grew 14.1 percent to ₹254.5 crore from ₹223.1 crore a year ago, while its EBITDA margin remained stable at 26.4 percent.

JB Chemicals’ stock came under pressure as KKR offloaded a 5.78 percent stake via a block deal at a discounted price. While the company’s financial performance remains robust, the recent sell-off and the broader market weakness have weighed on its stock price. Going forward, investors will watch for any further stake dilution by KKR and monitor the company's ability to sustain its growth momentum.

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