Torrent Power has entered into an agreement with L&T Power Development, a wholly owned subsidiary of Larsen & Toubro (L&T) to acquire 100% of equity stake in Nabha Power for Rs 6,889 crore, including debt.
Nabha Power (NPL), a coal-fired power plant operator in northern India, is a wholly owned subsidiary of L&T Power Development (L&TPDL). It owns and operates a 1,400 MW (2×700 MW) supercritical coal-fired thermal power plant at Rajpura in Patiala district, Punjab, under a 25-year power purchase agreement.
L&T to receive Rs 3,661 crore from sale of Nabha Power
Larsen & Toubro said in its regulatory filing that it will receive Rs 3,661 crore for the sale of plant operator Nabha Power.
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.”
Torrent Power deepens coal bet with entry into north India power market
Upon completion of the acquisition, Torrent’s operational capacity will increase from 5 GW to 6.4 GW.
The deal adds to Torrent’s recent push to scale up its thermal portfolio as power producers move to coal-based power capacity to meet rising electricity demand in India.
Last year, Torrent announced a $2.5 billion coal power project in central India and was evaluating plans to build 5–7 GW of capacity over the next decade.
“The acquisition marks Torrent’s entry into the high-growth power market of northern India,” Torrent Power’s Chairman Samir Mehta said in a statement. The deal will deliver “a meaningful uplift in the overall revenues and profitability,” he added.
L&T share price
The share price of L&T is trading flat in the intraday trade on Monday. The stock however has gained 13.43% in past six months.
Torrent Power share price
The share price of Torrent Power is trading flat in the intraday trade on Monday. The stock however has gained 9.81% in past six months.