J B Chemicals & Pharmaceuticals, a pharmaceutical company that manufactures and markets a diverse range of pharmaceuticals is up by over 40% in the last one week. The rally was triggered by the company's strong first quarter performance. Its consolidated net profit surged by over 92% to 119.51 crore on 17.1% increase in net sales to 522.29 crore in Q1 June 2020 over the same month, last year. The share closed at 1,125 on Friday.

The strong results for Q1 FY21 were driven by growth in exports, API and chronic therapies in the domestic market, along with lower sales and marketing costs during lockdown. The results were announced after market hours on 14 September 2020.

J B Chemicals & Pharmaceuticals Ltd, incorporated in 1976, has a market cap of 8,729 crore. The company exports to many countries worldwide with presence in US, Europe, Australia, South Africa, other developing countries, Russia and CIS. The stock has rallied by 106% in the last six months and by 187% in the last one year.

Earlier this year on July 2, Global investment firm KKR & Co. Inc entered into an agreement to acquire 41.7 million equity shares of JB Chemicals, representing 54%, from the promoters of the company. As part of the deal, KKR acquired the stake at 745 per share.

After this transaction, an open offer was launched to acquire 20.93 million fully paid-up equity shares of JB Chemicals, representing 26%. The open offer commenced on Friday, September 11, and will close on September 24.

The stock of JB Chemicals and Pharmaceutical has gained 51% ever since the acquisition was announced.