Larsen & Toubro (L&T) announced the execution of a Securities Purchase Agreement (SPA) to divest its entire stake in Nabha Power Limited (NPL) to Torrent Power Limited. NPL is a wholly-owned subsidiary of L&T Power Development Limited. The sale, valued at Rs. 3,660.87 crores, is part of L&T’s strategy to exit the power development projects business. The transaction is expected to close on or before June 30, 2026, pending regulatory approvals.
L&T Divests Wholly Owned Power Subsidiary
Larsen & Toubro (L&T) confirmed today, February 16, 2026, that its subsidiary, L&T Power Development Limited (LTPDL), has entered into a definitive agreement to sell 100% of the equity and convertible instruments held in Nabha Power Limited (NPL) to Torrent Power Limited.
This divestment aligns with L&T’s broader strategic objective to unlock value and focus on its robust core businesses, exiting the development projects segment. S N Subrahmanyan, Chairman & Managing Director – L&T, noted the move positions the company to create long-term value for stakeholders.
Transaction Details and Financial Impact
The consideration for the sale is set at Rs. 3,660.87 crores, which will be received upon closing, subject to adjustments. The expected date for the completion of the transaction is on or before June 30, 2026.
Nabha Power Limited Profile
Nabha Power Limited (NPL) is a wholly-owned subsidiary of LTPDL. It owns and operates a 1,400 MW (2 X 700 MW) supercritical coal-fired thermal power plant located in Rajpura, Patiala district, Punjab. The plant was commissioned in 2014 and operates under a 25-year Power Purchase Agreement.
The financial contribution of NPL to the consolidated L&T group for the last financial year (ending March 31, 2025) was:
- Turnover: Rs. 4,421.54 crores, representing 1.73% of L&T’s consolidated turnover.
- Net Worth: Rs. 3,553.00 crores, representing 3.64% of L&T’s consolidated net worth.
NPL has demonstrated strong operational performance, achieving a Plant Availability Factor (PAF) of 95.36% in FY25 and a PLF of 94.33% in July 2024.
Buyer Profile and Strategic Rationale
The buyer, Torrent Power Ltd., is described as one of the largest private sector players in India, possessing an integrated presence across power generation, transmission, and distribution. Samir Mehta, Chairman of Torrent Power, stated that the acquisition marks the company’s entry into the high-growth power market of northern India.
The transaction is categorized as not involving related party transactions. Furthermore, the disclosure confirms that the undertaking being divested does not form part of the Promoter Group/Group Companies of L&T.
Source: BSE
