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Torrent Power has agreed to acquire 100 per cent equity in Nabha Power from L&T Power Development for INR 6,889 crore, pending regulatory approvals. NPL operates a 1,400 MW supercritical coal plant in Punjab under a 25-year PPA, with secure coal supply agreements. The acquisition will expand Torrent Power's operational capacity from 5 GW to 6.4 GW, strengthen cash flows, and enhance profitability from day one. NPL reported revenues of INR 4,866 crore and adjusted EBITDA of INR 1,153 crore in FY25, reflecting high operational efficiency with a 95.36% plant availability.
Torrent Power has announced that it has signed an agreement with L&T Power Development to acquire 100 per cent equity in Nabha Power for an enterprise value of INR 6,889 crore. Nabha Power Ltd (NPL) is currently a wholly owned subsidiary of L&T Power Development Ltd, which in turn is owned by infrastructure giant Larsen & Toubro (L&T). Advertisement
According to Torrent Power, the acquisition covers all equity stakes and convertible instruments in NPL. The transaction is still subject to regulatory approvals and standard closing conditions. Once completed, Torrent Power's operational capacity will increase from 5 GW to 6.4 GW.
Torrent Group Chairman Samir Mehta highlighted that NPL would bring a well-established operational asset into Torrent's portfolio, supported by fully contracted cash flows and a proven operational record. He added that the acquisition would immediately enhance revenues and profitability. L&T Chairman and Managing Director S N Subrahmanyan said the divestment aligns with L&T's strategy to unlock value and strengthen its core businesses, while creating long-term benefits for stakeholders, including business partners, shareholders, and employees.
Commissioned in 2014, NPL operates a 1,400 MW (2x700 MW) supercritical coal-fired power plant in Rajpura, Patiala district, Punjab, under a 25-year power purchase agreement. The plant maintains long-term fuel supply contracts with SECL and NCL for 2.775 million tonnes and 2.464 million tonnes of coal, respectively, along with arrangements for alternate procurement to manage any shortfall.
In FY25, the plant reported a revenue of INR 4,866 crore and an adjusted EBITDA of INR 1,153 crore, with a plant availability factor of 95.36 per cent.
Torrent Power, part of the INR 45,000-crore Torrent Group, is an integrated power utility valued at INR 29,165 crore, operating across generation, transmission, and distribution, making it one of India's largest companies in the power sector.
Source PTI
FAQ
1. What is the recent acquisition announced by Torrent Power?
Torrent Power Ltd has signed an agreement to acquire 100 per cent equity in Nabha Power Ltd from L&T Power Development Ltd, a subsidiary of Larsen & Toubro, for an enterprise value of INR 6,889 crore. The transaction is subject to regulatory approvals and standard closing conditions.
2. What are the key features of Nabha Power?
NPL operates a 1,400 MW (2x700 MW) supercritical coal-fired power plant in Rajpura, Patiala district, Punjab. It runs under a 25-year power purchase agreement (PPA) and has long-term coal supply agreements with SECL and NCL, along with alternate procurement arrangements to ensure fuel security. The plant reported revenues of INR 4,866 crore and adjusted EBITDA of INR 1,153 crore in FY25, with a plant availability factor of 95.36 per cent, reflecting strong operational efficiency.
3. How will the acquisition affect Torrent Power's capacity and operations?
Once the acquisition is completed, Torrent Power's operational capacity will increase from 5 GW to 6.4 GW. The addition of NPL strengthens the company's generation portfolio, provides fully contracted cash flows, and is expected to enhance profitability immediately, supporting growth across generation, transmission, and distribution segments.
4. What are the strategic benefits for Torrent Power and L&T?
For Torrent Power, the acquisition brings a well-established operational asset with secure revenue streams and high efficiency into its portfolio. For Larsen & Toubro, divesting NPL aligns with its strategy to unlock value, focus on core businesses, and create long-term benefits for stakeholders including shareholders, employees, and partners.
5. What is Torrent Power's position in the Indian power sector?
Torrent Power, part of the INR 45,000-crore Torrent Group, is an integrated power utility valued at INR 29,165 crore. It operates across electricity generation, transmission, and distribution, making it one of India's largest and most diversified private sector power companies.
6. What financial performance metrics make Nabha Power an attractive acquisition?
In FY25, NPL reported revenues of INR 4,866 crore and adjusted EBITDA of INR 1,153 crore. The plant has a high plant availability factor of 95.36 per cent, long-term PPAs, and secure coal supply arrangements, all of which contribute to predictable cash flows and operational reliability, making it an immediately accretive addition to Torrent Power's portfolio.
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