Larsen & Toubro Limited’s wholly owned arm, L&T Power Development Limited, has signed a securities purchase agreement (SPA) to divest Nabha Power Limited (NPL) to Torrent Power Limited for Rs 3,660.9 crore.
In a regulatory filing dated 16 February, L&T confirmed that the transaction involves the sale of 100% of its equity stake and convertible instruments held in Nabha Power. Upon completion of the deal, NPL will cease to be a wholly owned subsidiary of L&T.
The companies expect to close the transaction on or before 30 June 2026, subject to customary closing conditions and regulatory approvals.
As per L&T’s disclosure, Nabha Power contributed Rs 4,421.5 crore in turnover, accounting for 1.73% of L&T’s consolidated revenue as of 31 March, 2025. The company reported a net worth of Rs 3,553 crore, representing 3.64% of L&T’s consolidated net worth.
L&T described the divestment as a value-driven monetisation exercise aligned with its broader strategy to exit the development projects business and sharpen its focus on core operations.
L&T Chairman and Managing Director S N Subrahmanyan said the sale supports the company’s objective of unlocking value to strengthen its core businesses. He added that the move will help create long-term value for stakeholders.
Torrent Power Chairman Samir Mehta said the acquisition marks the company’s entry into the high-growth north Indian power market.
He noted that Nabha Power will add a high-quality, well-established operating asset to Torrent Power’s portfolio, backed by fully contracted cash flows and a strong operational track record. According to him, the acquisition will be value accretive from day one, contributing meaningfully to overall revenues and profitability.
Mehta added that the transaction expands Torrent Power’s footprint without introducing development or execution risk, enhances portfolio diversification, and aligns with the company’s disciplined growth strategy, prudent capital allocation, and balance-sheet resilience.
Nabha Power owns and operates a 1,400 MW (2×700 MW) supercritical coal-based thermal power plant in Rajpura, Punjab. Commissioned in 2014, the plant operates under a 25-year power purchase agreement and maintains long-term fuel supply agreements with SECL and NCL.
The facility recorded a plant availability factor of 95.36% in FY25, placing it among the top-performing thermal power plants in the country.
L&T clarified that Torrent Power is not part of its promoter group and confirmed that the transaction does not qualify as a related-party deal.
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