Nabha Power secures approval to convert Rs 5,341-cr debt to equity
Nabha Power, a subsidiary of L&T Power Development, has received shareholders’ approval to convert part of its debt of Rs 5,341 crore into equity in case of a default in future, according to filings with the government authorities.
L&T was earlier planning to sell the Punjab-based unit but as there is a delay in finding a buyer, the company has asked the shareholders for permission to convert part of the debt without giving any timeline to do the same.
Nabha Power made a profit of Rs 302 crore for the fiscal year ended March this year on revenues of Rs 4,129 crore.
Bankers said there was no question of Nabha Power defaulting on its loan as the company is backed by L&T and the enabling resolution was cleared by shareholders in case of any future default.
