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Investor Relations Management Update May FY15


Share Price Movements

• Tata Power, up by 33% performed equally well as most of its peers in the last month. All the stock

in the power and infrastructure sector have seen double digit increase in the last one month in the

run-up to and post the election results.

Summary – Share Price Movement

Tata Power Stock Price

52-Week High

52-Week Low

BETA

110.8

68.25

0.996

Lanco 47%

Reliance Power 38%

NTPC 38%

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Summary – Investors & Analysts Meetings

Analyst Reports

• Currently 41 analysts are listed on Bloomberg

• 4 of 41 analysts have a Sell / Reduce / Underperform rating on Tata Power with price targets Rs. 70-85. Most

other analysts have a price target of Rs. 85-105 per share with either a Buy or Hold rating.

Key Investor/Analyst Meetings Held in May FY15:

Firm Designation Representative of Firm Representative of Company

1 UBS Securities

Credit Research

Managing Director,

Credit Analyst

Edwin Chan, Anna Ho Nandakumar Tirumalai, Anirudh

Mani

2 Religare Research Analyst Misal Singh Anirudh Mani

3 Macquarie, Australia Portfolio Manager Yu Tao Zhang Nandakumar Tirumalai, Anirudh

Mani

4 J P Morgan Research Analyst Sumit Kishore Nandakumar Tirumalai

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Summary – Investors & Analysts Queries

Investor Queries / Concerns

• Tata Power Standalone

• Utilization of funds from rights issue towards new capex and debt repayment

• Monetization of other assets on the balance sheet, especially telecom shares to raise additional cash

• Growth plans of the Company now that the CERC order has come

• Regulated equity in different projects and returns earned on it

• Capex in Mumbai licence area over next 2 years; impact of laying new

• CGPL

• Savings due to suggested lowering of interest rates and sale of excess power

• Likely date of settlement in ATE and further being challenged by the procurers in Supreme Court

• Accounting of compensatory tariff in CGPL and its impact on impairment reversal and D:E ratio

• Coal SPVs

• Likely date of completion of Arutmin sale, probability of getting money from Bumi and use of proceeds

• Operational details (production, sales, cost of production etc.) at KPC and Arutmin seperately

• Tata Power Delhi Distribution

• Regulatory asset builup in TPDDL and likely time period for dilution of it

• Audit of TPDDL and Tata Power’s reaction to the Delhi Government’s demands

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Shareholding Pattern – Last 6 months

S.No. Group Description Percentage to Capital

May 2014 Apr 2014 Mar 2014 Feb 2014 Jan 2014 Dec 2013

1 Promoter Holdings 33.04 33.04 32.47 32.47 32.47 32.47

2 Foreign Holdings 29.52 30.50 30.18 29.92 29.85 30.26

3 Insurance Companies 21.36 20.85 20.99 21.02 20.96 20.85

4 Mutual Funds 1.05 0.73 0.83 1.18 1.21 1.24

5 State Financial Corporations 0.03 0.03 0.03 0.03 0.03 0.03

6 Banks 0.36 0.39 0.42 0.42 0.45 0.42

7 Other bodies Corporates 1.36 1.14 1.17 1.01 1.02 0.94

8 Individuals 13.27 13.32 13.91 13.94 14.00 13.79

Grand Total 100.00 100.00 100.00 100.00 100.00 100.00

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Top 10 FIIs (May 2014)

Name of Shareholder % of Holding

First State 9.99

Matthews Pacific 5.57

Aberdeen Asset Management 2.03

Blackrock Fund 1.47

Abu Dhabi Investment Authority 1.15

Vanguard 1.00

Morgan Stanley 0.71

Government of Singapore 0.48

Retail Employees Superannuation Trust 0.34

Copthall 0.29

Total 23.03

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Top 10 Buyers (May 2014)

Name of Shareholder Units Bought

(lakhs)

Value Bought

(Rs. Crs.) *

% of Holdings

(30-May-2014)

Birla Sun Life Insurance Company Limited 104.3 94.9 0.39

Morgan Stanley Mauritius Company Limited 88.8 80.8 0.55

Reliance Securities Limited 50.0 45.5 0.18

SBI Life Insurance Co. Ltd 43.4 39.5 0.30

Morgan Stanley Asia (Singapore) Pte. 36.0 32.8 0.17

Swiss Finance Corporation (Mauritius) Limited 28.8 26.2 0.22

Rakesh Jhunjhunwala 25.0 22.8 0.09

Macquarie Emerging Markets Asian Trading 23.8 21.6 0.17

Pioneer Azionario Paesi Emergenti 22.6 20.6 0.08

BNP Paribas Arbitrage 21.7 19.8 0.17

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* Average Share price at which shares bought assumed at Rs. 91 per share


Top 10 Sellers (May 2014)

Name of Shareholder Units Sold

(lakhs)

Value Sold

(Rs. Crs.) *

% of Holdings

(28-Feb-2014)

JSH (Mauritius) Limited 608.8 554.0 0.34

Aberdeen Global Indian Equity (Mauritius) 52.2 47.5 1.65

Life Insurance Corporation Of India 17.9 16.3 7.36

ICICI Ltd 14.2 12.9 0.00

Deutsche Bank A.G. 13.0 11.8 0.00

National Insurance Company Ltd 11.0 10.0 0.70

Canada Pension Plan Investment Board 11.0 10.0 0.01

General Insurance Corporation Of India 9.2 8.4 2.54

Government Pension Fund Global 8.7 8.0 0.01

Edelweiss Securities Ltd 7.9 7.2 0.00

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* Average Share price at which shares bought assumed at Rs. 91 per share


Summary – Competition Updates Power Projects

• India has agreed to build 4 new JV hydro power projects in Bhutanwith cumulative capacity of 2,120 MW

• Sri Lanka has expedited the implementation of the Sampur thermal power project to be built by NTPC

• Sterlite Grid has been awarded its 6th UMTP on a BOO basis by the Ministry of Power. The line will carry 1000 MW of

power from Punjab to J&K and consists of 1 substation and 800 circuit kilometers of 400kV lines.

• NTPC is considering building its first imported coal based power plant of 2,400 MW project at Pudimadaka in AP

• Adani Power is planning to set up a 10 GW thermal power plant in the Kutch region of Gujarat at Bhadreshwar

• SJVN has declared COD of 3 units of the 412 MW Rampur hydro power project in Himachal Pradesh

• Jindal India Thermal Power has commissioned a 600 MW unit at the Derang thermal power project at Angul in Odisha

• Competition Commission of India (CCI) has cleared JPVL’s US$ 1.6 bn deal to sell two hydro power plants to Abu

Dhabi National Energy Company

• JSPL has announced the full commissioning of its 810 MW captive power plant at Angul in Odisha.

• NTPC’s 50 MW solar power plant at Raigarh in Chhattisgarh is now fully operational, with the declaration of COD for

the final 20 MW

Fuel

• India's coal imports fell to 15.2 mt in April, down 6% YoY

• NTPC has cancelled the contract with Thiess for the Pakri Barwadih coal block due to delays in development

• Coal India has written off Rs8.76bn as settlement for the quality dispute with NTPC

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Summary – Competition Updates Financing, M&A

• Adani Power has pledged over 273 mn shares accounting for about 9.51% of the total shareholding in the company

with IDBI Trusteeship Services Ltd as security. With this, now the total pledging stands at 28.79% of equity

• Srei Infra Finance plans to acquire Abhijeet group’s 1,080 MW Jharkhand power project

• Sterlite Grid is looking to raise between US$ 50 and 75 mn in equity funding to execute the two transmission projects it

won in Sep 2013

• GVK Power has said that it has no plans to sell its 540 MW Goindwal Sahib coal based power plant to NTPC

Other

• Madhya Pradesh SERC has kept tariffs unchanged for F2015 for all consumer categories

• Piyush Goyal has been appointed as the new Minister for Power, Coal & Renewables

• Bhajan Pratap Singh has assumed the office of Member of DERC

• MERC has allowed Adani Power to charge an additional Rs 1.01/unit as compensatory tariff for its 800 MW PPA with

Maharashtra from the Tiroda plant

• Kerala SERC has approved a tariff revision to mobilize Rs 6.5 bn for the Kerala discoms

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Appendix


Analysis of Analyst Recommendations

Stock No of Recommendations % of Recommendations Ranking

Buy Hold Sell Total Buy Hold Sell Total

No of

analysts

covering

the stock

No of

Buys Buy %

Adani 2 6 23 31 6% 19% 74% 100% 5 11 11

CESC 18 8 3 29 62% 28% 10% 100% 7 4 5

JSPL 15 9 7 31 48% 29% 23% 100% 5 7 7

JSW 17 8 8 33 52% 24% 24% 100% 4 6 6

Lanco 3 1 6 10 30% 10% 60% 100% 11 10 9

NHPC 7 10 6 23 30% 43% 26% 100% 8 8 8

NTPC 32 11 4 47 68% 23% 9% 100% 2 2 3

Power Grid 42 5 1 48 88% 10% 2% 100% 1 1 1

PTC 18 1 2 21 86% 5% 10% 100% 9 4 2

Reliance Power 5 3 12 20 25% 15% 60% 100% 10 9 10

Tata Power 26 11 4 41 63% 27% 10% 100% 3 3 4

Total – Sector 185 73 76 334 55% 22% 23% 100%

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Stock Price Summary

BSE Power

Index

Tata

Power

Reliance

Power NTPC JSPL

Adani

Power Lanco CESC NHPC Powergrid

30/04/2014 22418 1687 78.1 68.5 116.3 255.5 48.3 7.5 454.5 19.0 105.8

30/05/2014 24217 2167 103.9 94.8 159.9 298.0 60.3 11.0 577.5 24.8 121.8

Movement 8.0% 28.5% 33.1% 38.4% 37.5% 16.6% 24.8% 46.9% 27.1% 30.5% 15.1%

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Firm Name Analyst Recommendation Target Date

HSBC Arun Kumar Singh neutral 108 06/02/14

KR Choksey Shares & Sec Pvt Ltd Abhishek Patel hold 91 06/02/14

Ambit Capital Pvt Ltd Bhargav Buddhadev buy 106 06/02/14

Quant Broking Pvt Ltd Abhineet Anand accumulate 103 06/02/14

ICICI Securities Prakash Gaurav Goel add 105 06/01/14

Jefferies Lavina Quadros buy 105 05/30/14

Kotak Securities Murtuza Arsiwalla add 115 05/30/14

Motilal Oswal Securities Ltd Nalin Bhatt neutral 102 05/30/14

Axis Capital Limited Bhavin Vithlani hold 101 05/30/14

IDFC Securities Ltd Shirish Rane neutral 103 05/30/14

HDFC Securities Abhinav Sharma neutral 95 05/30/14

Edelweiss Capital Shankar K buy 112 05/30/14

Centrum Broking Pvt Ltd Sachin Mehta sell 85 05/30/14

IndiaNivesh Securities Pvt Ltd Abhishek Jain buy 115 05/30/14

Deutsche Bank Abhishek Puri buy 115 05/29/14

Standard Chartered Jay Kakkad outperform 105 05/27/14

UBS Pankaj Sharma buy 120 05/27/14

Antique Stock Broking Limited Rahul Modi buy 96 05/12/14

Goldman Sachs Pulkit Patni neutral/cautious 86 05/02/14

Karvy Stock Broking Ltd Rupesh D Sankhe buy 93.61 04/21/14

JPMorgan Sumit Kishore overweight 97 04/16/14

Firstcall India Equity Advisors Pvt Ltd Team Coverage buy 105 04/14/14

EVA Dimensions Neil Fonseca overweight 04/10/14

Batlivala & Karani Securities Vishal Biraia outperform 96 04/03/14

Credit Suisse Amish Shah underperform 73 03/24/14

ICICIdirect.com Chirag J Shah buy 98.43 03/10/14

Analyst Report Summary

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