Saraf & Partners Advise L&T Power on Rs 6,889 Cr Nabha Power Divestment

Saraf and Partners advised Larsen &Toubro Power Development Limited (L&T Power), a wholly owned subsidiary of Larsen and Toubro (L&T) on the landmark divestment of its 1400 MW (2X700 MW) thermal power asset (Nabha Power Limited) in Punjab to Torrent Power Limited.

Saraf and Partner’s Projects, Infrastructure and Energy team acted as the counsel for Larsen & Toubro Power Development Limited (L&T Power), a wholly owned subsidiary of Larsen & Toubro (L&T), on the divestment of its 1400 MW thermal power asset in Punjab, a supercritical coal based plant with twin 700 MW units (Nabha Power Plant), for the enterprise value of INR 6,889 Crores to Torrent Power Limited. The Nabha Power Plant currently has a long-term power purchase agreement with Punjab State Power Corporation Limited.

The transaction involves sale of 100% equity and convertible instruments of Nabha Power Limited (NPL) by L&T Power to Torrent Power Limited subject to regulatory approvals. Saraf and Partners advised L&T Power in structuring the transaction and drafting, reviewing, finalisation and execution of securities purchase agreement.

The divestment of NPL aligns with L&T’s strategic objective of unlocking value to strengthen its robust core businesses. This move positions L&T to create long-term value for its stakeholders, business partners, shareholders and employees.

The transaction team for L&T Power was led by Avirup Nag (Partner) and Ankit Sahoo (Partner Designate) along with Asima Ghosh (Senior Associate), Ashwini Panwar ( Associate) and Paritosh Bisen (Associate).