L&T Signs Agreement to Divest Nabha Power to Torrent Power for ₹3,660 Crore
Mumbai, February 16, 2026: Larsen & Toubro Limited (L&T) has signed a Securities Purchase Agreement (SPA) to divest its entire stake in Nabha Power Limited (NPL) to Torrent Power Limited for ₹3,660.87 crore.
The agreement was executed between L&T Power Development Limited (L&T PDL), a wholly owned subsidiary of L&T, Nabha Power Limited, and Torrent Power Limited. Upon completion of the transaction, NPL will cease to be a wholly owned subsidiary of L&T.
Transaction Details
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Stake Divested: 100% equity and convertible instruments of Nabha Power Limited
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Buyer: Torrent Power Limited
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Transaction Value: ₹3,660.87 crore (subject to closing adjustments)
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Expected Completion: On or before June 30, 2026
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Regulatory Status: Subject to requisite approvals and closing conditions
The transaction does not fall under related party transactions and has been executed in compliance with SEBI Listing Regulations.
Financial Contribution of Nabha Power
As of March 31, 2025:
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Turnover: ₹4,421.54 crore (1.73% of L&T consolidated turnover)
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Net Worth: ₹3,553 crore (3.64% of L&T consolidated net worth)
Strategic Rationale
L&T stated that the divestment aligns with its broader strategy to exit development projects and unlock value to strengthen its core businesses.
S. N. Subrahmanyan, Chairman & Managing Director of L&T, said the move supports the company’s long-term strategy of capital reallocation and stakeholder value creation.
About Nabha Power Limited
Nabha Power Limited owns and operates a 1,400 MW (2x700 MW) supercritical coal-based thermal power plant at Rajpura in Punjab’s Patiala district. The plant was commissioned in 2014 under Government of India’s Case II Competitive Bidding Guidelines and operates under a 25-year Power Purchase Agreement.
The plant has long-term fuel supply agreements and achieved a Plant Availability Factor (PAF) of 95.36% in FY25, reflecting strong operational performance.
Torrent Power’s Expansion Strategy
Torrent Power, headquartered in Ahmedabad, is a fully integrated power utility with operations across generation, transmission, and distribution. The acquisition marks its entry into the northern India power market and strengthens its thermal generation portfolio with stable, contracted cash flows.