JB Chemicals Share Price Declines 7% Following Block Deal

Market Performance

Shares of JB Chemicals and Pharmaceuticals fell by over 7% during early trading on March 27, 2025. This decline followed a significant block deal involving the transfer of 90 lakh shares, representing a 5.78% stake in the company. The transaction led to selling pressure, contributing to the stock's downward movement.

Block Deal Details

The block deal was initiated by Tau Investments Holdings PTE Ltd, an affiliate of funds managed by KKR. According to recent exchange data, the deal aimed to reduce KKR's holding in JB Chemicals, where it currently holds a 53.66% stake.

Reports indicate that the floor price for the transaction was set at ₹1,625 per share, reflecting a 4.9% discount to JB Chemicals' previous closing price. The total deal value amounted to approximately ₹2,576 crore. Investment bankers managing the deal included Kotak Mahindra Capital, Jefferies, IIFL Capital, and Avendus Capital.

KKR acquired a controlling stake in JB Chemicals in July 2020 for approximately ₹3,100 crore. The private equity firm had previously explored a complete exit from the company by engaging with strategic buyers and other private equity firms. However, those negotiations did not progress due to differences in valuation expectations.

Stock Price Movement

Following the block deal, JB Chemicals' share price declined by 7.4%, reaching an intraday low of ₹1,576.65. This marks a decrease of over 22% from its 52-week high of ₹2,029 recorded in August 2024. Earlier this month, the stock touched its 52-week low of ₹1,434.85.

Over the past year, JB Chemicals' share price has increased by approximately 6%. However, recent months have seen a downward trend, with the stock falling by 2.2% in March, following a 7% decline in February and a 4.3% drop in January.

Financial Performance

Revenue

• ₹963.5 crore (Q3 FY25), an increase of 14.1% from ₹844.5 crore (Q3 FY24)

EBITDA

• ₹254.5 crore (Q3 FY25), reflecting a 14.1% rise from ₹223.1 crore (Q3 FY24)

EBITDA Margin

• 26.4% (Q3 FY25), consistent with the previous year

Net Profit

• ₹162.5 crore (Q3 FY25), a growth of 21.6% compared to ₹133.6 crore (Q3 FY24)

Summary

JB Chemicals' stock faced significant pressure following the block deal, where KKR offloaded a 5.78% stake at a discounted price. Despite the company reporting strong financial performance, including revenue and net profit growth, the recent sale and overall market weakness have contributed to the stock's decline. Future developments will likely focus on whether KKR proceeds with further stake reductions and the company's ability to maintain its growth trajectory.