KKR investment: KKR may sell $300-m stake in JB Chemicals

Mumbai: Global private equity firm KKR plans to sell up to ₹2,576 crore ($300 million) worth of shares in JB Chemicals & Pharmaceuticals through a block deal on Thursday, showed a term sheet issued by the participating banks. The sale represents a potential 10.2% stake in the company.

The floor price has been set at ₹1,625 per share, a 4.9% discount to Wednesday’s closing price of ₹1,695 on NSE. The base offer comprises 10.6 million shares (6.8% stake) worth ₹1,717.4 crore, along with a greenshoe option of 5.3 million shares (3.4% stake) valued at ₹858.7 crore.

As of December-end, KKR, through its firm Tau Investment Holdings Pte, held a 53.66% stake in JB Chemicals.

In 2020, KKR bought a 54% stake in JB Chemicals for ₹3,109 crore. The deal was executed at ₹745 per share. In September 2023, JB Chemicals split its stock by half to ₹1. Adjusted for the stock split, KKR made returns of 336% over the past five years.

KKR has been considering selling its controlling stake in JB the past year. The stock has rallied 74% in the last two years, sharply outperforming a 39% rise in the Nifty index. IIFL Capital Services, Jefferies India, Kotak Securities, and Spark Institutional Equities are the book running lead managers for the transaction.