New Delhi: L&T Power Development Ltd (LTPDL), a wholly-owned subsidiary of Larsen & Toubro (L&T), on Monday agreed to sell 100 per cent of equity and convertible instruments in Nabha Power Ltd (NPL) to Torrent Power Ltd.
NPL is a wholly-owned subsidiary of LTPDL.
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 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”.
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. 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”.