Torrent Power has completed the acquisition of 100% equity shares and convertible instruments of Nabha Power Limited for a total consideration of ₹3632.35 crore. The transaction was executed against L&T Power Development Limited following the receipt of approval from the Competition Commission of India. Consequently, Nabha Power has become a wholly owned subsidiary of the company effective June 25, 2026.

The acquisition marks the conclusion of the process initiated with the execution of the Securities Purchase Agreement. The total consideration of ₹3632.35 crore was paid consequent to closing adjustments. This strategic move expands Torrent Power's operational footprint by integrating Nabha Power entirely into its portfolio.

Transaction Details

The deal involved the purchase of the entire equity stake along with convertible instruments. The completion of this acquisition was disclosed to the exchanges pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Regulatory Approvals

The acquisition process required clearance from the Competition Commission of India, which was obtained prior to the closing of the transaction. Torrent Power had previously intimated the exchanges regarding the execution of the agreement and the receipt of this regulatory approval on February 16, 2026, and April 08, 2026, respectively.

Torrent Power has allotted 3,80,000 Secured, Rated, Listed, Taxable, Non-Cumulative, Redeemable and Non-Convertible Debentures (NCDs) aggregating to ₹3,800 crore on June 24, 2026. The issuance was conducted on a private placement basis across Series 15 in Tranches A, B, C, and D, enabling the company to raise capital at varying coupon rates and tenures to meet its funding requirements.

NCD Issuance Details

The debentures have a face value of ₹1 lakh each and are secured by a first pari passu charge on the company's present and future movable and immovable assets, excluding specific renewable and leasehold properties. The instruments are proposed to be listed on the Wholesale Debt Market Segment of the National Stock Exchange of India Limited.

Coupon Rates and Maturity

The NCDs are divided into four tranches with maturity periods ranging from 3 to 10 years. The coupon rates vary from 8.10% to 8.20% per annum, depending on the tenure. Interest payments are scheduled annually, starting June 24, 2027.

Security and Covenants

The security structure includes a first pari passu charge on movable and immovable assets, shared with term lenders and working capital lenders. Specific exclusions from the security cover include assets of renewable projects such as the GENSU, Mahidad, and Suzlon projects, as well as designated leasehold and specific properties like the Bhiwandi Property and New Delhi Property. A second charge over the security is available to entities providing hedging contracts.

The debentures include provisions for step-up coupons in the event of a rating downgrade. For each notch downgrade, the coupon rate increases by 0.25%, while a subsequent upgrade reduces the rate by 0.25%, capped at the original coupon. If the rating falls to “BBB+” or below, debenture holders holding at least 51% of the outstanding value can call for accelerated redemption, requiring the company to repay the principal within 60 days.