Torrent Power signed a definitive agreement to acquire 100% equity and convertible instruments in Nabha Power.

• Seller: L&T Power Development, a wholly owned subsidiary of Larsen & Toubro.

• Enterprise value: ₹6,889 crore.

• Transaction subject to regulatory approvals and customary closing conditions.

• Market reaction:

  • L&T shares closed up 0.70% at ₹4,202.10.

  • Torrent Power shares closed up 0.25% at ₹1,466.95 on the Bombay Stock Exchange.

• NPL FY25 performance:

  • Revenue: ₹4,866 crore.

  • Adjusted EBITDA: ₹1,153 crore.

• Asset profile:

  • 1,400 MW (2×700 MW) supercritical coal-fired plant at Rajpura, Punjab.

  • Commissioned in 2014 under Case II Competitive Bidding Guidelines of the Government of India.

  • Operates under a 25-year Power Purchase Agreement (PPA).

• Operations & technology:

  • Built on advanced Japanese supercritical technology.

  • Sustained availability above 90%.

  • Located in a power-deficient region, enabling ancillary revenue opportunities.

  • Infrastructure allows seamless capacity expansion.

• Fuel security:

  • Long-term FSAs with South Eastern Coalfields (2.775 MMT) and Northern Coalfields (2.464 MMT).

  • Alternate coal procurement mechanisms in place.

Equipment supports blending of domestic and imported coal for flexibility.