Mumbai, Feb 16 (BVI): Gujarat-based Torrent Power Limited (Torrent) will acquire 100% of equity stake and convertible instruments in Nabha Power Limited (NPL) located in Punjab for an Enterprise Value of INR 6,889 Crores.
In this regard, Torrent Power has entered into a definitive agreement with L&T Power Development Limited (L&TPDL), a wholly owned subsidiary of Larsen & Toubro (L&T).
NPL is a wholly-owned subsidiary of LTPDL, and the transaction is subject to requisite regulatory approvals and customary closing conditions, according to a statement issued by Torrent Power today.
The super critical NPL plant, built on advanced Japanese technology, maintains sustained availability levels above 90%.
Strategically located in a power-deficit region, the plant also supports potential ancillary revenue streams.
Furthermore, existing infrastructure allows for seamless expansion of capacity, supporting future growth opportunities.
Upon completion of the acquisition, Torrent’s operational capacity will increase from ~5 GW to 6.4 GW.
Speaking on the development, Torrent Power Chairman Samir Mehta stated: “The acquisition marks Torrent’s entry into the high-growth power market of northern India. Upon completion, NPL will add a high-quality, best-in-class and 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 the overall revenues and profitability.
“Leveraging our proven expertise in managing power assets, this addition provides a robust platform to enhance scale, improve operational efficiency, and strengthen cash-flow stability.
“Importantly, the transaction expands our footprint without introducing development or execution risk and further enhances portfolio diversification while remaining firmly aligned with our disciplined approach to growth, prudent capital allocation, and balance-sheet resilience.”
Commenting on this, S N Subrahmanyan, Chairman & Managing Director, L&T 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.”
NPL owns and operates a 1,400 MW (2 X 700 MW) super-critical coal-fired thermal power plant at Rajpura in Patiala district, Punjab.
Commissioned in 2014, the power plant was set up under Case II Competitive Bidding Guidelines of Government of India. It operates under a 25-year Power Purchase Agreement (PPA). (BVI)
