Torrent Power is reportedly in discussions to acquire Larsen & Toubro’s (LTOUF) thermal power business in a potential $1 billion deal, including debt. According to sources familiar with the matter, both sides are working with advisers, but the structure is still taking shape. For L&T, this move could support its effort to streamline operations and redirect capital toward its core engineering and construction business. For Torrent, it may open up a new chapter of expansion in conventional power, adding scale to an already diverse energy portfolio.
L&T has been exploring a sale of the unit for years, including earlier talks with Sembcorp Industries’ India arm in 2021. While no deal materialized then, the current discussions suggest renewed urgency. Torrent Power, part of the Ahmedabad-based Torrent Group, is already active across generation, transmission, distribution, and cable manufacturing. A thermal asset of this size could potentially give it more operating leverage and balance across generation typeseven as India’s energy mix continues shifting toward renewables.
Still, nothing is locked in. Sources said talks remain ongoing, with the possibility of terms changing or new bidders entering the fray. L&T declined to comment, and Torrent hasn’t yet responded. Shares of Torrent Power are down about 9% year-to-date, putting its market cap around $8 billionan interesting backdrop as it considers a bold bet in a maturing energy segment.
This article first appeared on GuruFocus.