Torrent Power has announced the acquisition of Nabha Power from the unit of Larsen & Toubro. According to the company’s statement, this deal will be done at an enterprise value of Rs 6,889 crore. According to the company, the deal is subject to necessary regulatory approvals and customary closing conditions. Nabha Power Limited (NPL) is a wholly owned subsidiary of L&T Power Development Limited (L&TPDL), itself a subsidiary of infrastructure giant L&T.
Torrent Power’s operational efficiency will increase
After completion of this acquisition, Torrent Power’s operational capacity will increase from 5 GW to 6.4 GW. Torrent Group Chairman Sameer Mehta said NPL will add an established operating asset to the company’s portfolio, backed by fully contracted cash flows and a strong operational track record. He said this acquisition will be significantly accretive to revenues and profits from day one.
Aim to strengthen core businesses
Meanwhile, N&T Chairman and Managing Director S.N. Subramanian said the sale of NPLs is in line with the company’s strategy to strengthen its core businesses and unlock value, thereby creating value for long-term stakeholders. Nabha Power’s 1,400 megawatt (2×700 MW) supercritical coal-based thermal power plant, commissioned in 2014, is located at Rajpura in Patiala district of Punjab and is operated under a 25-year power purchase agreement (PPA). Is. The plant also has long-term fuel supply agreements with SECL and NCL, as well as alternative coal purchase arrangements. According to the company, this supercritical power asset recorded revenue of Rs 4,866 crore, adjusted EBITDA of Rs 1,153 crore and plant availability factor of 95.36 per cent in FY 2024-25. According to the company, the flagship of the around Rs 45,000 crore Torrent Group The company Torrent Power is one of the leading integrated power utilities in the country, with presence across the entire power value chain including generation, transmission and distribution.
