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Torrent Power Limited to Acquire Nabha Power Limited for Rs 6,889 Crore

Torrent Power Limited has signed a definitive agreement with L&T Power Development Limited (L&TPDL), a wholly owned arm of Larsen & Toubro Limited, to acquire 100% equity and convertible instruments of Nabha Power Limited (NPL). The transaction is valued at an enterprise value of Rs 6,889 crore and is subject to regulatory clearances and customary closing conditions.

Strong Operating Asset with Stable Cash Flows

NPL operates a fully contracted 1,400 MW (2x700 MW) supercritical coal-based power plant at Rajpura in Punjab’s Patiala district. In FY25, the company reported revenue of Rs 4,866 crore and an adjusted EBITDA of Rs 1,153 crore. The plant, built using advanced Japanese technology, consistently maintains availability levels above 90%.

Located in a power-deficit region, the asset offers stable contracted revenues along with potential ancillary income opportunities. The existing infrastructure also provides scope for future capacity expansion.

Capacity Boost and Strategic Synergies

Following completion of the deal, Torrent Power’s operational generation capacity will rise to 6.4 GW. Beyond capacity addition, Torrent will benefit from NPL’s decade-long operational expertise and technical capabilities, strengthening its thermal portfolio and supporting future greenfield expansion plans.

Chairman Samir Mehta stated that the acquisition marks Torrent’s strategic entry into the high-growth northern power market. He highlighted that the addition will be value-accretive from day one, enhancing revenue, profitability, operational scale, and cash-flow stability without introducing execution risk.

L&T’s Strategic Divestment

S. N. Subrahmanyan, Chairman & Managing Director of Larsen & Toubro, noted that the divestment aligns with L&T’s objective of unlocking value and reinforcing its core businesses, while creating long-term value for stakeholders.

The transaction reflects continued consolidation and portfolio realignment within India’s power sector, with Torrent strengthening its thermal generation footprint and geographic diversification.