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LT · Larsen & Toubro Limited · NSE · Filed 25 Jun · 1 min read

L&T Completes ₹3,632 Crore Sale of Nabha Power to Torrent Power

Larsen & Toubro's power arm has closed its 100% divestment of Nabha Power, which ceases to be a subsidiary.

What was filed

Larsen & Toubro has told the exchanges that the sale of Nabha Power Limited (NPL) is complete. The transaction was carried out by L&T Power Development Limited (L&T PDL), a wholly owned subsidiary, which had earlier signed a Securities Purchase Agreement with Torrent Power Limited — first intimated on February 16, 2026 — to divest all of the equity and convertible instruments it held in NPL. With the closing, NPL has ceased to be a subsidiary of both L&T PDL and the Company.

The consideration and a retained instrument

On completion, L&T PDL received the consideration stated in the filing, after adjustments at closing. One exposure continues: L&T PDL will retain a block of 0.1% Non-Convertible Redeemable Preference Shares in NPL, recorded in Nabha Power's books as on March 31, 2026. So while operating control and equity pass to Torrent, a small preference-share holding stays on L&T's side.

Why it matters to a holder

The completion converts a signed agreement into a realised exit, bringing cash into L&T PDL and removing NPL from the group's consolidation perimeter. The filing confirms only the closing, the consideration received, and the retained preference shares — it does not discuss the use of proceeds or any accounting impact.

Sale consideration received
₹3,632.35 crore
Stake divested
100% of equity and convertible instruments
Retained preference shares (book value)
₹157.92 crore
Retained preference shares (count)
2,32,50,00,000 shares, 0.1% Non-Convertible Redeemable Preference Shares

For a holder, the closing realises the previously announced exit and removes Nabha Power from L&T's consolidated group, with a small preference-share holding retained; the filing does not address deployment of the proceeds or the earnings impact.

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