L&T to Divest Nabha Power Ltd. for ₹3,660.87 Crore to Torrent Power
Larsen & Toubro will divest its wholly-owned subsidiary, Nabha Power Limited, to Torrent Power for ₹3,660.87 crore. The transaction is expected to close by June 30, 2026. This divestment is part of L&T's strategy to exit development projects and strengthen its core businesses.
The sale of Nabha Power Limited, while a significant transaction, represents a portion of L&T's overall business. The impact is medium as it aligns with a strategic shift rather than a major immediate financial windfall or setback for the entire conglomerate.
The divestment is described as a 'value-driven monetisation exercise' and aligns with L&T's strategy to exit development projects and unlock value. Torrent Power views the acquisition as value accretive, enhancing its presence in northern India.
Larsen & Toubro Limited (L&T) has announced the execution of a Securities Purchase Agreement (SPA) to divest its wholly-owned subsidiary, Nabha Power Limited (NPL), to Torrent Power Limited. The transaction involves the sale of 100% of the equity and convertible instruments held by L&T PDL, another wholly-owned subsidiary of L&T, in NPL.
The consideration for the sale is ₹3,660.87 crore, to be received upon closing, subject to adjustments. The expected date for the completion of this sale is on or before June 30, 2026.
Nabha Power Limited, which owns and operates a 1,400 MW supercritical coal-fired thermal power plant in Punjab, contributed ₹4,421.54 crore to L&T's consolidated turnover and had a net worth of ₹3,553.00 crore as of March 31, 2025. This divestment is part of L&T's broader strategy to exit the development projects business and unlock value for its core operations. Torrent Power, an integrated power utility, stated that the acquisition aligns with its strategy to enter the northern Indian power market and will be value accretive from day one.
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Larsen & Toubro Limited filed this with the NSE as a statutory disclosure, categorised under other corporate actions. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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