Larsen & Toubro Completes Divestment of Nabha Power Limited to Torrent Power

Key Metrics:

What Happened ?

Key Details

Transaction Highlights:

• L&T completed the divestment of 100% equity and convertible instruments held in Nabha Power Limited.
• The buyer is Torrent Power Limited.
• The seller is L&T Power Development Limited, a wholly owned subsidiary of Larsen & Toubro.
• Total consideration received amounts to ₹3,632.35 crore, after closing adjustments.
• L&T PDL will continue holding 0.1% Non-Convertible Redeemable Preference Shares in Nabha Power Limited.
• The retained preference shares had a book value of ₹157.92 crore as on 31 March 2026.
• Nabha Power Limited has ceased to be a subsidiary of L&T following the completion of the transaction.
• The transaction concludes the divestment process announced earlier in February 2026.

Note:

• The divestment monetizes L&T’s investment in Nabha Power while retaining only a limited preference shareholding, resulting in the deconsolidation of the subsidiary.

Risk Analysis

Summary:

• The divestment has been completed, significantly reducing transaction execution risk. Future financial impact will depend on the deployment of sale proceeds and any residual exposure through the retained preference shares.

Key Risks:

• The transaction is fully completed with consideration received.
• Nabha Power is no longer part of L&T’s consolidated subsidiaries.
• L&T retains only preference shares with limited financial exposure.
• Future impact will depend on capital allocation and accounting treatment of the proceeds.

Worst Case:

• If the retained preference shares underperform or require impairment, there could be a limited financial impact. No such issue has been indicated in the current disclosure.

Risk Level: Low

Company Commentary

• L&T confirmed that the divestment of Nabha Power Limited has been successfully completed.
• L&T Power Development Limited has received ₹3,632.35 crore as consideration following closing adjustments.
• The company clarified that L&T PDL will continue to hold specified non-convertible redeemable preference shares in Nabha Power.
• Following the completion of the transaction, Nabha Power Limited has ceased to be a subsidiary of both L&T Power Development Limited and Larsen & Toubro Limited.