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Torrent Power Strengthens Generation Business with 1,400 MW Punjab Plant Buyout
Acquisition: Torrent Power has signed an agreement to acquire 100% stake in Nabha Power from L&T Power Development Limited at an enterprise value of ₹6,889 crore. The deal will increase the company's total operational capacity from 5 GW to 6.4 GW.
Torrent Power has declared its acquisition of Nabha Power, which is a subsidiary of Larsen & Toubro’s company. According to the company’s statement, the acquisition will be completed at an enterprise value of ₹6,889 crore. According to the company, the acquisition is subject to regulatory approval and other normal closing conditions. Nabha Power Limited, also known as NPL, is a wholly owned subsidiary of L&T Power Development Limited, which is a subsidiary of the infrastructure company L&T.
With the completion of this acquisition, the operational capacity of Torrent Power is expected to rise to 6.4 GW from 5 GW currently. According to Samir Mehta, Chairman of Torrent Group, "The acquisition of NPL will provide us with an existing operating asset with contracted cash flows, along with an excellent track record of operations." He added that the acquisition will significantly enhance revenue and profitability from day one.
S.N. Subrahmanyan, Chairman and Managing Director of N&T, stated that the sale of NPL is in line with the company's strategy to strengthen its core businesses and unlock value, thereby creating long-term value for stakeholders.
