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L&T Power Development Limited will divest Nabha Power Limited to Torrent Power Limited for ₹3,660.9 crore, marking Torrent Power’s entry into the north Indian power market.
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Larsen & Toubro Limited's arm, L&T Power Development Limited, executed a securities purchase agreement (SPA) to divest Nabha Power Limited to Torrent Power Limited for ₹3,660.9 crore.
In a regulatory filing on Monday, February 16, L&T said the transaction involves the sale of 100% equity and convertible instruments held in Nabha Power.
Upon completion of the transaction, Nabha Power (NPL) will cease to be a wholly owned subsidiary of L&T. While the deal is expected to be completed on or before June 30, 2026, it is subject to the fulfilment of customary closing conditions and regulatory approvals.
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According to the company’s disclosure, Nabha Power contributed ₹4,421.5 crore in turnover, or 1.73% of L&T’s consolidated revenue, and had a net worth of ₹3,553 crore, or 3.64% of consolidated net worth, as of March 31, 2025.
L&T said the divestment is a value-driven monetisation exercise, aligned with its broader strategy to exit the development projects business.
Commenting on the transaction, L&T Chairman and Managing Director S N Subrahmanyan said the sale aligns with the company’s objective of unlocking value to strengthen its core businesses. "This move positions us to create long-term value for all our stakeholders," he added.
Torrent Power Chairman Samir Mehta said the acquisition marks the company’s entry into the "high-growth" north Indian power market. He said, "NPL will add a high-quality, best-in-class and 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."
He added, "The transaction expands our footprint without introducing development or execution risk and further enhances portfolio diversification while remaining firmly aligned with our disciplined approach to growth, prudent capital allocation, and balance-sheet resilience"
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Nabha Power owns and operates a 1,400 MW (2×700 MW) supercritical coal-based thermal power plant at Rajpura in Punjab. Commissioned in 2014, the plant operates under a 25-year power purchase agreement and has long-term fuel supply agreements with SECL and NCL. The facility recorded a plant availability factor of 95.36% in FY25, among the highest in the country.
L&T clarified that Torrent Power is not part of the promoter group and that the transaction does not fall under related-party transactions.
Shares of L&T were trading marginally up at ₹4,174.30, while shares of Torrent Power were trading 1,466.90 as of 12.14 pm. L&T has gained 29.57% in the past year, and Torrent Power has surged 18.36% in the same period.
