Torrent Power Gains CCI Approval for Nabha Power Acquisition

The Competition Commission of India (CCI) has given its approval for Torrent Power Limited's planned acquisition of Nabha Power Limited. This approval, notified on April 7, 2026, covers Torrent Power's acquisition of 100% of Nabha Power's equity stake and convertible instruments from L&T Power Development Limited. The company had initially announced the agreement on February 16, 2026.

Strategic Importance of the Deal

This green signal from the CCI is a vital step for Torrent Power as it aims to consolidate its market position in North India. The acquisition of Nabha Power's 1400 MW thermal asset is expected to add value immediately and aligns with Torrent Power's strategy to expand its operational capacity, thereby strengthening its revenue and profitability.

Deal Background and Seller's Strategy

Torrent Power agreed in February 2026 to acquire Nabha Power for an enterprise value of ₹6,889 crore. Nabha Power operates a 1,400 MW supercritical thermal power plant located in Rajpura, Punjab, which was commissioned in 2014. The seller, L&T Power Development Limited, is divesting Nabha Power as part of its strategy to exit development projects and consolidate its portfolio.

Torrent Power's Expanded Operations

With this approval, Torrent Power will gain full operational and strategic control over Nabha Power Limited. Upon integrating Nabha Power, the company's total operational generation capacity is set to increase from 5 GW to 6.4 GW. This move also marks Torrent Power's entry into the significant power market of northern India.

Key Conditions and Outlook

The filing did not detail specific risks related to this CCI approval. The acquisition remains subject to customary closing conditions.

Nabha Power Performance Metrics

For the fiscal year ending March 2025 (FY25), Nabha Power Ltd. reported revenue of ₹4,866 crore and an adjusted EBITDA of ₹1,153 crore. The plant maintained a high availability factor of 95.36%.

Next Steps for Investors

Investors will be watching for the final completion of the acquisition and Torrent Power's successful integration of Nabha Power's operations. The market awaits the formal order from the CCI and any subsequent announcements regarding the transaction's closure.