L&T arm to sell Nabha Power to Torrent Power in ₹3,661 crore deal

Larsen & Toubro (L&T) announced that its wholly-owned subsidiary, L&T Power Development Limited (L&T PDL), has signed a Securities Purchase Agreement to sell its 100% stake in Nabha Power Limited (NPL) to Torrent Power Limited for ₹3,660.87 crore. The transaction is expected to be completed on or before June 30, 2026, after which NPL will no longer be a subsidiary of L&T.

Following the announcement, shares of Larsen & Toubro Ltd were trading at ₹4,175.40, up ₹1.50 (0.036%), while Torrent Power shares were at ₹1,464.00, gaining ₹0.75 (0.051%).

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In its statement, Torrent Power said it "has entered into a definitive agreement with L&TPDL to acquire 100 per cent of equity stake and convertible instruments in NPL for an enterprise value of Rs 6,889 crore." The transaction is, however, subject to necessary regulatory approvals and customary closing conditions, the company added.

Upon completion of the acquisition, Torrent Power’s operational capacity will rise from 5 GW to 6.4 GW, strengthening its presence in northern India.

Samir Mehta, Chairman of Torrent Group, said, "NPL will add a well-established operating asset to our portfolio supported by fully contracted cash flows and a strong operational track record. The acquisition will be value accretive from day one, delivering a meaningful uplift in the overall revenues and profitability."

S N Subrahmanyan, Chairman & Managing Director of L&T, said, "The divestment of NPL aligns with L&T’s strategic objective of unlocking value to strengthen our robust core businesses. This move positions us to create long-term value for all our stakeholders -- business partners, shareholders, and employees."

Commissioned in 2014, NPL operates a 1,400 MW (2 × 700 MW) supercritical coal-fired thermal power plant in Rajpura, Patiala district, Punjab, under a 25-year power purchase agreement. The plant has long-term fuel supply arrangements with SECL and NCL for 2.775 million tonnes and 2.464 million tonnes of coal respectively, along with mechanisms for alternative procurement to ensure supply continuity.

The supercritical power asset reported a revenue of ₹4,866 crore and adjusted EBITDA of ₹1,153 crore in FY25, with a plant availability factor of 95.36%.

Torrent Power, part of the ₹45,000-crore Torrent Group, is a ₹29,165-crore integrated power utility with a presence across the entire power value chain, including generation, transmission, and distribution, making it one of India’s largest private sector power companies.