Strategic Acquisition Strengthens Torrent Power’s Generation Portfolio
New Delhi, February 16: Torrent Power Ltd announced on Monday that it has signed a definitive agreement with L&T Power Development Ltd to acquire 100 per cent of the equity and convertible instruments in Nabha Power Ltd for an enterprise value of ₹6,889 crore.Nabha Power Ltd is a wholly-owned subsidiary of L&T Power Development Ltd, which in turn is a wholly-owned subsidiary of infrastructure major Larsen & Toubro.
The transaction remains subject to necessary regulatory approvals and customary closing conditions.
Operational Capacity to Increase to 6.4 GW
Upon completion of the acquisition, Torrent Power’s operational capacity will increase from 5 GW to 6.4 GW, strengthening its generation portfolio.Torrent Group Chairman Samir Mehta said Nabha Power will add a well-established operating asset backed by fully contracted cash flows and a strong operational track record. He stated that the acquisition will be value-accretive from day one and is expected to deliver a meaningful uplift in overall revenues and profitability.
L&T to Unlock Value Through Strategic Divestment
L&T Chairman and Managing Director S N Subrahmanyan said the divestment aligns with the group’s strategic objective of unlocking value to strengthen its core businesses. He added that the move positions the company to create long-term value for stakeholders, including business partners, shareholders, and employees.Rajpura Thermal Plant and Long-Term PPAs
Commissioned in 2014, Nabha Power owns and operates a 1,400 MW supercritical coal-fired thermal power plant comprising two units of 700 MW each at Rajpura in the Patiala district of Punjab, under a 25-year power purchase agreement.The plant has long-term fuel supply agreements with SECL and NCL for 2.775 million tonnes and 2.464 million tonnes, respectively. It also has mechanisms for alternate coal procurement to address any supply shortfall.
Financial and Operational Performance in FY25
The supercritical power asset reported revenue of ₹4,866 crore and adjusted EBITDA of ₹1,153 crore in FY25. The plant availability factor stood at 95.36 per cent during the year.Torrent Power, an integrated power utility of the ₹45,000-crore Torrent Group, operates across the entire power value chain, including generation, transmission, and distribution. The company has a market capitalization of ₹29,165 crore and is among the largest players in India’s power sector.
The acquisition of Nabha Power is set to expand Torrent Power’s operational footprint while adding contracted cash flows and enhancing scale in thermal generation.
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