L&T Power Development Ltd (LTPDL), a wholly-owned subsidiary of Larsen & Toubro (L&T), will sell 100% of equity and convertible instruments in Nabha Power Ltd (NPL) to Torrent Power Ltd, a leading name in the Indian power sector.
Given NPL’s long-term power purchase agreement and stable operating performance, the divestment is a value-driven monetisation exercise. The transaction is aligned with L&T’s broader strategy to exit the development projects business.
Commenting on the decision, 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.”
Speaking on the development, Samir Mehta, Chairman – Torrent Power Ltd, 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.
