KKR Expected to Sell Stake in JB Chemicals: Check Key Details Here!

JB Chemicals share price will be in focus today. This follows news of global private equity firm KKR to sell its stake of 10.2% from JB Chemicals. The sale is worth US$300 million. It will be completed through a block deal via KKR’s affiliate Tau Investment Holdings.

Details of KKR’s Block Deal

The floor price for the block deal is ₹1,625 per share. This is a discount of nearly 5%. It is against the previous close of ₹1,703.40 on Wednesday. The base offer includes 1.06 crore equity shares. This represents a 6.8% stake. It is worth ₹1,805.60 crore.

There is also a greenshoe option of 0.53 crore shares. This is a 3.4% stake. It is valued at ₹902.80 crore.

KKR’s Investment in JB Chemicals

Tau Investment Holdings held a 53.66% stake in JB Chemical & Pharma. This was as of December 31, 2024.

In 2020, KKR had acquired a 54% stake in JB Chemicals. The deal was worth ₹3,109 crore. The acquisition price was ₹745 per share. This was followed by a 1:1 stock split in September 2023. The stock split resulted in a face value of ₹1. Since then, KKR has generated returns of over 335%.

Merchant Bankers for the Transaction

IIFL Capital Services is a book running lead manager. Jefferies India is also a lead manager. Kotak Securities and Spark Institutional Equities are also involved. The total market capitalisation of the company was over ₹26,500 crore on Wednesday. The stock has gained more than 13% in the last 2 weeks.

KKR’s Previous Attempts to Exit

KKR has considered selling its controlling stake in JB for the past year. It has held discussions with strategic suitors, including private equity players. KKR intended to sell its entire stake in JB Chemicals and Pharma in 2025. However, the deal could not be finalised. This was due to disagreements on the company’s valuation.

JB Chemicals’ Financial Performance

JB Chemicals and Pharmaceuticals reported a 21.64% year-on-year in net profits. This was in the December 2024 quarter. Revenue from operations also increased by 14% year-on-year to ₹963.4 crore. EBITDA was up by 14.1%. It reached ₹254.5 crore. The EBITDA margin was 26.4% for the quarter.

Conclusion

KKR is likely to sell a significant stake in JB Chemicals. The block deal is expected to be worth around US$300 million. This move comes after KKR’s successful investment in the company. The sale could influence the stock’s performance in the near term.

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