Mumbai: Torrent Power Limited (Torrent) has entered into a definitive agreement with L&T Power Development Limited (L&TPDL), a wholly owned subsidiary of Larsen & Toubro (L&T). to acquire 100% of equity stake and convertible instruments in Nabha Power Limited (NPL) for an Enterprise Value of INR 6,889 Crores.
NPL is a wholly owned subsidiary of LTPDL, and the transaction is subject to requisite regulatory approvals and customary closing conditions.
NPL is a fully contracted thermal power asset with revenue of INR 4,866 crores and Adjusted EBITDA of INR 1,153 crores in FY 2025. The supercritical plant, built on advanced Japanese technology, maintains sustained availability levels above 90%. Strategically located in a power-deficit region, the plant also supports potential ancillary revenue streams. Furthermore, existing infrastructure allows for seamless expansion of capacity, supporting future growth opportunities.
Upon completion of the acquisition, Torrent’s operational capacity will increase from ~5 GW to 6.4 GW. In addition, Torrent will gain NPL’s institutional expertise and decade-long technical capabilities, developed through exceptional implementation and operational excellence. This acquisition creates valuable synergies that will strengthen Torrent’s greenfield thermal power development strategy.
Samir Mehta, Chairman, said, “The acquisition marks Torrent’s entry into the high-growth power market of northern India. Upon completion, 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. Leveraging our proven expertise in managing power assets, this addition provides a robust platform to enhance scale, improve operational efficiency, and strengthen cash-flow stability. Importantly, 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.”
S N Subrahmanyan, Chairman & Managing Director, 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.”
