New Delhi, February 16 Torrent Power announced on Monday that it has entered into an agreement with L&T Power Development to acquire 100 per cent of the equity stake in Nabha Power for an enterprise value of ₹6,889 crore.
Nabha Power Ltd (NPL) is a wholly-owned subsidiary of L&T Power Development Ltd (L&TPDL), which is a wholly-owned subsidiary of infrastructure major Larsen & Toubro (L&T).
In a statement, Torrent Power Ltd (Torrent) said it "has entered into a definitive agreement with L&TPDL to acquire 100 per cent of the equity and convertible instruments in NPL for an enterprise value of ₹6,889 crore."
However, the transaction remains subject to necessary regulatory approvals and customary closing conditions, the company said.
Upon completion of the acquisition, Torrent's operational capacity will increase from 5 GW to 6.4 GW.
Torrent Group Chairman Samir Mehta 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 overall revenues and profitability."
L&T Chairman & Managing Director S N Subrahmanyan 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 owns and operates a 1,400 MW (2x700 MW) supercritical coal-fired thermal power plant at Rajpura in the Patiala district of Punjab, under a 25-year power purchase agreement.
Further, the plant has long-term fuel supply agreements with SECL and NCL for 2.775 million tonne and 2.464 million tonne, respectively, along with mechanisms for alternate coal procurement to address any supply shortfall.
The supercritical power asset reported a revenue of ₹4,866 crore and adjusted EBITDA of ₹1,153 crore in FY25, and a plant availability factor of 95.36 per cent.
Torrent Power, a ₹29,165-crore integrated power utility of the ₹45,000-crore Torrent Group, is one of the largest companies in the country's power sector, with a presence across the entire power value chain – generation, transmission, and distribution.
