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Informist, Monday, Feb. 16, 2026

 

--L&T arm to sell Nabha Power to Torrent Power for INR 36.61 bln 

--Torrent Power: Nabha Power acquisition to be value accretive from day one 

--L&T: Nabha Power sale in line with strategy to exit development projects ops 

 

MUMBAI – Larsen & Toubro Ltd. on Monday informed the exchanges that its wholly-owned subsidiary L&T Power Development Ltd. will sell 100% equity and convertible instruments held in Nabha Power Ltd. to Torrent Power Ltd. for INR 36.61 billion. The transaction is expected to be completed by Jun. 30. 

 

"The transaction is aligned with L&T's broader strategy to exit the development projects business," L&T said in a press release. Nabha Power, a wholly-owned subsidiary of L&T Power, owns and operates a 1.4 gigawatt supercritical coal-fired thermal power plant at Rajpura in Patiala, Punjab. 

 

"The acquisition will be value accretive from day one, delivering a meaningful uplift in the overall revenues and profitability," Samir Mehta, chairman of Torrent Power said. The acquisition is also seen strengthening Torrent Power's foot print in north India, the company said in a presentation. Torrent Power also said there is a scope of brownfield expansion for the company. 

 

As Nabha Power is located near two cement plants owned by UltraTech Cement and Adani Enterprises, there are also possibilities of additional stream of revenue by selling fly ash to them. Fly ash can be utilised as a substitute to cement and used in concrete, and is also used as filler in paints, adhesives, etc. 

 

For the quarter ended December, L&T had reported a consolidated net profit of INR 32.15 billion on revenues of INR 714.50 billion. Torrent Power posted INR 6.43 billion as net profit on revenues of INR 67.78 billion. At 1307 IST, shares of L&T were flat at INR 4,176.90 on the National Stock Exchange and those of Torrent Power traded at INR 1,462.20, up 1%.  End 

 

Reported by Gopika Balasubramanium

Edited by Vandana Hingorani

 

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