ANALYZING STOCKS – FUNDAMENTAL ANALYSIS

by Mint India

This type of looking at the problem consists of selecting the stocks based on information
regarding the financial situations of the company, its area of activity, and also on comparing the
price with other similar ones from the market. The fundamental analysis is useful when investing
in stocks for a long period of time (at least a year). Those who use this type of analysis have
themselves different objectives of evolution and profit, using mostly certain criteria.

Buying stocks - based on the fundamental analysis

Certain criteria are to be taken into consideration. There are three important categories that can
be used alone or in combinations.

1. Value investing – some of the long term investors are preoccupied with determining the value
of the business they are placing their money in, searching to buy the stock at the greatest
discount possible compared to the calculated value. In other words, the question here is how
much do the companies’ goods would be worth if they were to be sold? An estimative answer can
be given evaluating active elements they posses (such as lands, fixed transportation means,
floating actives) at a correct market price, adding to that the funds the company has. Investors
who use this criterion think that the respective business has a future in efficiency if the stock
holders are to be chanced, if the economic environment is changed and improved or any other
major alteration, at which moment the company would value at least three times as much as in
the beginning.

2. Growth Stocks – are used by the investors preoccupied with identifying companies belonging
to areas that tend to increase and to expand. They are focusing on the rhythm of evolution of the
business figure and profit, determining the growth rate in real terms. This can be forecasted upon
the future, but it is necessary to also identity the economic and legislative risk factors that could
appear and alter the graph. Also investors reflect upon the quality of that company and their
advantage or disadvantage compared to concurrent companies. Usually, growing companies
don’t give dividends, the profit remaining just the difference between the buying price and the
selling price of a stock. These companies are the most risky ones, especially because of the lack
of dividends, which could’ve added some stability.

3. Income Stocks – Income stocks are dividend stocks. Investors prefer these stocks because
they give them some stability and a clear benefit. These stocks are recommended if the stock
price is lower than the estimated dividend price, and if they belong to mature companies. Usually,
when investing in such stocks you are making a long-term investment.

Selling stocks - based on the fundamental analysis

A stock has to be sold if analyzing the situation fundamentally when the answer to the question
“Why am I buying this stock?” is not true anymore. The following situations can also be reasons
to sell:
- a newsflash about a company or about the entire economic area modifies initial expectations
- the price for the stock has been over evaluated
- over evaluation can be determined by comparing it with the ones from other companies

ECONOMIC GROWTH RATE

ADB to loan $600 mn to Power Grid Corp

Reuters
Posted: Apr 01, 2008 at 1138 hrs IST
Updated: Apr 01, 2008 at 1138 hrs IST

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The Asian Development Bank will loan $600 million to the state-run Power Grid Corp of
India to part-finance the expansion of a power transmission project, the bank said on
Tuesday. "In addition to this $600 million loan, a potential second ADB loan of $400
million is expected to be reviewed for approval later this year," the Manila-based bank
said in a statement.

Power Grid is constructing a high-voltage power transmission system to transmit clean

and abundant hydro-power generated in the northern and the north-eastern parts of India
to demand centres in the west and within the northern areas, it said.

The total cost of the project is estimated at $2.54 billion.

Apart from the ADB loan, Power Grid will invest $762 million and raise the balance
funding from other financial institutions.

Last month, the World Bank pledged a $600 million loan to Power Grid.

India aims increase power generation capacity by 78,600 megawatts by 2012, as part of
its drive to scale up infrastructure to sustain a high economic growth.

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“Investing in Infrastructure: Key to Economic

Growth”
Keynote Speech by
Haruhiko Kuroda
President
Asian Development Bank

At the Administrative Staff College of India

9 March 2006
Hyderabad, India

Introduction

Distinguished guests, ladies and gentlemen: It is an honor to be invited to

the Administrative Staff College of India. Since 1956, this esteemed
institution has contributed much to India’s development by training public
servants, policy makers, and corporate managers in the art and science of
administration and management.

As India moves forward towards becoming a mature and vibrant economy,

the need for infrastructure to support broad based, inclusive growth is ever
more pressing.

I am grateful for this opportunity to share some thoughts on the challenges

India faces in this regard, and ADB’s role in helping to meet this need. I am
particularly pleased to deliver this message in the thriving city of
Hyderabad, which will also be the host to ADB’s 39th Annual Meeting just 2
months from now.

Role of Infrastructure in Growth and Poverty Reduction

As you know, India’s performance in recent years has been among the best
in the world. The reforms initiated since the early 1990s have unshackled
the economy. The long-term trend rate of growth has steadily increased
from an average of 3.5% a year between the 1950s and 1970s, to around
7% to 8% in recent years. According to the Government’s latest estimates,
GDP grew by 7.5% in 2004-2005, and is expected to grow by 8% in 2005-
2006.1 The prowess of India’s IT and IT-enabled services, biotechnology,
pharmaceuticals, and various manufacturing segments is being recognized
the world over. Its macro-fundamentals are sound and foreign exchange
reserves are comfortable at around $139 billion.2

This rapid growth has led to a decline in the incidence of poverty – from
36% in 1993-1994 to 26% in 1999-2000.3 The number of people in poverty
came down from 320 million to 260 million during this period, and has
undoubtedly declined further since the last official estimates became
available.

Despite these improvements, hundreds of millions of India’s people remain

poor. Given the current pace and pattern of growth, India will not reach
many of the nonincome Millennium Development Goals (MDGs) for maternal
mortality rates, infant mortality rates, or gender parity in secondary
enrollment ratios within the stipulated timeframe of 2015. Since India
accounts for nearly 16% of world population, this would imply that the
world as a whole will fall short of attaining the MDGs.

Infrastructure development will play a crucial role in helping India sustain

high growth rates and more evenly spread the benefits of growth among its
people. The critical role of infrastructure in facilitating growth is widely
recognized, and well borne out by cross-country experience. For example,
the miraculous transformations of Japan, Hong Kong, the Republic of Korea,
Singapore, Taipei,China, Thailand, Malaysia, and the People’s Republic of
China were preceded and reinforced by substantial investments in physical
and social infrastructure. By promoting connectivity of producers and
markets, lowering transactions costs, and providing people with access to
important services like education and health care, a reliable infrastructure
network lays the foundation for a future of sustainable economic growth.
Extending roads, schools, health clinics, utilities and other services to those
populations who need it most will make the process of growth more
inclusive and bolster the fight against poverty.

Bottlenecks constraining India’s growth

Already, however, the accumulated economic and social costs of power

shortages, bad roads, inadequate capacity in ports, poor water and
sanitation facilities, and unreliable communication systems in India are
huge.

The latest Economic Survey of India (2005-2006) estimates that a power

shortage of 12% at peak levels and of 8% at non-peak levels points is
equivalent to around 150 billion Rupees ($3.4 billion USD) of foregone
generation capacity, or an approximate GDP loss of around 3 trillion Rupees
or $68 billion (assuming a supply multiplier of 20)!

Indian ports have a vessel turn-around time of 3 to 5 days, compared to

only 4 to 6 hours in Singapore and Hong Kong. Most large Indian cities are
over-stretched and congested due to fast growth, and are suffering from
scarce water and power supplies. The national highways account for 2% of
total road length, but 40% of total traffic. Moreover, of the total length of
national highways, only 12% is 4-lane, while over onethird is single lane.4
By adding significantly to the cost of doing business, infrastructure
bottlenecks also deter foreign and private investors, and further constrain
the process of growth.

Government’s Response

Fortunately, the Government of India is fully aware of these challenges, and

has been working to address them. For example, the $39 billion program of
Bharat Nirman5 will significantly improve the lives of millions of poor people
by connecting villages and providing housing, clean drinking water,
electricity and telephone service across rural India. The National
Horticulture Mission is upgrading irrigation infrastructure, expanding the
rural roads network, and strengthening agricultural storage and marketing
infrastructure. As of November 30, 2005, more than 6,000 kilometers of
roads have been constructed under the National Highway Development
Program, and over 6,000 more are under construction. Through the $27
billion National Urban Renewal Mission, 63 cities will benefit from better
housing, water and sanitation – and ultimately, better delivery of other
basic services such as health, education, and social security.6

These mega programs are essential for maintaining steady rates of growth
and poverty reduction. But financing them without adding to the fiscal
burden is clearly a major challenge.

For most of the 20th century, infrastructure investment was financed

publicly across the world. Since the mid-1980s however, rising costs, the
complexities of creating and maintaining infrastructure projects, increasing
fiscal pressures, and competing demands on public resources have forced
governments to look to the private sector for financing and expertise.

India is no exception. Since the crisis of 1991 and the launch of economic
reforms, the Government of India has been trying to rationalize the role of
the public sector, and to increase the participation of the private sector in
critical areas such as infrastructure. Considerable progress has been made
in attracting private capital in sectors such as telecommunications, ports,
power, and roads. But the response so far has fallen short of expectations
for various valid reasons – financial, technical, and economic.

A clear, mutual understanding of the risks and complexities involved in

undertaking large infrastructure projects is a pre-requisite for constructive
dialogue between Government and private parties. An infrastructure project
may be of great social benefit, but it may be too risky from the perspective
of private investors. The creation of roads, bridges, power lines and
drainage systems involves huge sunk costs. These assets are indivisible
public goods, and virtually non-tradable in most cases. The setting and
collection of user fees is often politicized, and this adds to the risk perceived
by investors. Financial and legal risks can arise from non-recourse
financing, complex payments mechanisms and other uncertainties.

I am pleased to note that the Government is responding to these issues. For

example, the provision of viability gap funding and the establishment of the
India Infrastructure Finance Company Limited (IIFCL) should go a long way
in attracting private investment again in India’s ambitious programs for
national highways, railway freight corridors, power generation and
transmission, and urban infrastructure.

In addition, the Government is promoting public-private partnerships in

highway development on a Build-Operate-Transfer basis. The Model
Concession Agreement (MCA) sets out a precise policy and regulatory
framework to reduce uncertainties, and apportion risks and rewards
between public and private partners. The model agreement is expected to
give a boost to private sector participation in road projects under the
National Highway Development Program. Similar agreements are also being
developed in the port and airport sectors to facilitate private participation.

I also highlight the Electricity Act 2003 – a bold step towards redressing the
fundamental distortions that have long plagued the Indian power sector.
The Act combines incentives for private participation with safeguards to
protect consumer interests. I am happy to note that thirteen independent
power projects of more than 5000 MW (amounting to $4.1 billion) have
attained financial closure, and another 10 projects with a total capacity of
more than 11,000 MW are currently under consideration.

Other innovative approaches are also being considered, such as a proposal

to fund the modernization programs of the Mumbai and Delhi airports by
loans in perpetuity. A similar financing arrangement was quite successful in
raising funds for the Euro Tunnel. Under such an arrangement, developers
repay only the interest (at a higher rate), and do not have to service the
principal of the debts they raise. By lowering the financial burden, such
approaches may elicit an encouraging response.

Role to be played by ADB

As a regional institution focused on poverty reduction, ADB is committed to

supporting the Government’s efforts to promote sustainable, inclusive
economic growth. India is one of ADB’s founding member countries, and the
third largest shareholder among its regional members. In line with the
Government’s priorities, we have recently strengthened our operations in
agriculture and rural development, and shifted focus to poorer states and
less developed regions to help reduce disparities and achieve the MDGs.

The bulk of our ongoing operations in India, as well as the proposed

program for 2006 – 2008, remain focused on the three core areas of
transport, urban, and energy infrastructure. Let me touch briefly on each.

In transport, ADB provided a series of loans to assist with the first two
phases of the National Highway Development Program. We are now working
with the National Highway Authority of India (NHAI) to see how best we can
help with the subsequent phases while attracting private participation and
investment on a Build-Operate-Transfer basis. We are assisting with a rural
road project covering Chhattisgarh and Madhya Pradesh, and will soon
move forward on a second such project for Assam, Orissa, and West
Bengal. We are also assisting Madhya Pradesh and Chhattisgarh in
upgrading their weak road networks, and similar projects are planned for
Uttaranchal, northeastern state, Jammu and Kashmir, and Jharkand.

In the energy sector, we are working with the Power Grid Corporation to
strengthen the national transmission grid, and with central power utilities to
help increase hydropower capacity. Our state power sector loans focus on
upgrading transmission, distribution, rural electrification, and capacity
building of power sector institutions. A specific aim of this work is reducing
system losses and improving collection of bills as required by the Electricity
Act 2003. Our programmed assistance for the North Eastern region, Madhya
Pradesh and West Bengal will complement that already underway in Assam,
Gujarat, and Madhya Pradesh.

Finally, our ongoing urban sector operations in Gujarat, Karnataka, Madhya

Pradesh, Rajasthan, and West Bengal combine infrastructure development
(primarily water, sanitation, and waste management) with targeted poverty
reduction components and a strong focus on municipal reforms and capacity
building. The 2006–2008 program will continue with similar projects to help
upgrade the infrastructure of selected cities in the states of the north east,
Jammu and Kashmir, Rajasthan, and Uttaranchal. We will also assist the
Government in implementing the National Urban Renewal Mission.

In addition to supporting governments in such efforts, ADB extends support

for private sector projects that have a clear development impact. With
operations in both sectors, ADB is uniquely positioned to leverage private
funds for large investment needs, and to promote partnerships between
private and public entities. Over the last year, we have been improving our
financial products to better meet our client countries’ development needs,
such as flexible financing solutions to support public-private partnerships.
Apart from traditional lending modalities (LIBOR plus a spread), we will now
offer non-recourse lending to public agencies provided certain basic financial
conditions are met.

With the launch of ADB’s rupee-denominated bond issue in February 2004,

India became the first developing member country to access ADB local
currency lending operations. Several borrowers in India’s infrastructure and
financial sectors have indicated a desire to borrow long-term rupees from
ADB, and we will explore the scope of expanding local currency lending in
consultation with the Government. Given the complexities inherent in large
infrastructure investments, the participation of the private sector will
naturally be a learning process, and will take time.

There is no single blue-print or approach. However, involvement of external

agencies such as ADB can reinforce the initiatives being taken by the
Government, and help to leverage additional private investment.

Conclusion

Ladies and gentlemen, the noted Indian economist Dr. V.K.R.V. Rao said
more than two decades ago, “The link between infrastructure and economic
development is not a once and for all affair. It is a continuous process; and
progress in development has to be preceded, accompanied, and followed by
progress in infrastructure, if we are to fulfill our declared objectives of
generating a self-accelerating process of economic development.”

I believe that India is on the right track. And I am confident that the public
and private sectors, working in partnership and in collaboration with
development agencies, will be able to bring about significant and
sustainable improvements in India’s infrastructure, which will also help the
overall process of growth. Growth is the best antidote to poverty, and we
are pleased to be a partner to India in this worthy endeavor.

Thank you.

__________

1 Government of India, 2006, Economic Survey of India, 2005-2006, New Delhi.

2 Ibid.
3 Planning Commission, 2002, 10th Five Year Plan of India, Government of India, New Delhi.
4 Government of India, 2006, Economic Survey of India, 2005-2006, New Delhi.
5 Bharat Nirman aims at building rural infrastructure. With an outlay of Rs. 1,740 billion ($39 billion)
over the next five years (2005-2009), it will have six components, namely, irrigation, roads; water
supply, housing, rural electrification and rural telecom connectivity. It would meet the following
targets by 2009: (i) an additional 10 million hectares under assured irrigation; (ii) connect all villages
that have a population of 1000 (or 500 in hilly/tribal areas) with a road; (iii) construct 6 million
additional houses for the poor; (iv) provide drinking water to the remaining 74,000 habitations that
are uncovered; (v) electrify the remaining 1,25,000 villages and offer electricity connection to 23
million households; and offer (vi) telephone connectivity to the remaining 66,822 villages.
6 Ibid.
© 2008 Asian Development Bank
Privacy | Terms of Use
INFLATION

In economics, inflation usually refers to a general rise in the level of prices of goods and
services over a period of time. This is also referred to as price inflation.[1] The term
"inflation" originally referred to the debasement of the currency, and was used to describe
increases in the money supply (monetary inflation); however, debates regarding cause
and effect have led to its primary use today in describing price inflation. Inflation can
also be described as a decline in the real value of money.[2] When the general level of
prices rises, each monetary unit buys fewer goods and services.

Economists

PowerGrid surges 93% on debut

Over 9.97 crore shares traded on BSE

Our Bureau

Mumbai, Oct. 5

Power Grid Corporation of India (PowerGrid), whose initial public offering fetched
a record response last month, listed at a 73 per cent premium to its issue price
of Rs 52 on the NSE on Friday.

The stock opened at Rs 89.80, peaking at Rs 109.50 before closing at Rs 100.60

(a 93.5 per cent premium to its issue price). The market valuation of the
company at the closing price worked out to over Rs 42,000 crore.

Over 9.97 crore shares of the company were traded on BSE, and over 48.1 crore
shares on NSE.

For a first day listing too, PowerGrid has set a record of sorts in the recent times.
September and August listings this year saw Kaveri Seed company, Motilal
Oswal, Omaxe, Take Solutions and others debut at a premium of between 20 per
cent and 33 per cent to their issue price.

Other companies such as Everonn and Vishal Retail, which listed at astounding
premia to their issue price (over 200 per cent) were much smaller in size.
“We knew we would get a good response, but this listing price is ‘lovely’,” said an
official with one of the managers to the issue, who did not want to be named.

“The PowerGrid stock has moved a bit ahead of earnings and expectations
although we did expect a premium of 40-50 per cent,” said Ms Shahina
Mukadam, Head of Research at IDBI Capital Market Services.

“To some extent this kind of premium can be attributed to the strength of the
company but it is more or less the fancy for the sector in the market,” said the
Head of Research at a major broking house.

power stocks Gain

Power stocks such as Reliance Energy and NTPC have gained enormously in the
current stock market rally.

PGCIL, whose issue size was Rs 2,985 crore, fetched 1,90,000 crore in
subscriptions. The QIB portion was subscribed 115 times. Managers to the issue
said FII subscriptions amounted to $30 billion, the largest ever for any Indian
IPO.

The PSU is the principal power transmission company in the country. A marked
feature of its IPO was the keen interest from pension funds on account of its low-
risk, assured income business, said analysts. The Government owns 86.36 per
cent stake in the company post the IPO.

PROFILE

Power Grid Corporation of India

From Wikipedia, the free encyclopedia

(Redirected from Power Grid Corporation of India Limited)

Jump to: navigation, search
This article is about an Indian power corporation. For the board game, see Power Grid
(board game).

The Power Grid Corporation of India Limited (POWERGRID) is a Public Sector

Undertaking of the Government of India which is engaged in construction, operation and
maintenance of high voltage transmission lines in India. Powergrid is operating more
than 60,000Km circuit Km of transmission lines and 105 Nos. EHVAC & HVDC
substations . About 40-45% of total power generated in India is being transmitted over
POWERGRID's transmission network. POWERGRID's transmission system availability
is maintained consistently over 99%. Powergrid is the central transmission utility of
India. This company is one of the Navratnas of India.
It has diversified into the telecommunications sector by installing optical fiber ground
wire on transmission towers.
Powergrid is also carrying out projects related to distribution, sub transmission and rural
electrification works in some of the states.

[edit] Mission

The mission of the corporation is establishment and operation of regional and national
power grids to facilitate transfer of electric power within and across the regions with
reliability, security and economy, on sound commercial principles.

POWERGRID is committed to:

a)establish and maintain an efficient and effective "national grid " with due regard to
time, cost, technology, and value additions.
b)sustainable development through conservation of natural resources and adopting
environment friendly technology on principle of avoidance,minimization and mitigation
c)ensure safe,occupational hazard free and healthy work environment ,to the satisfaction
of stake holders in all areas of its activities and shall endeavor to continually improve its
management systems and practices in conformity to legal and regulatory provisions.

[edit] Awards

Power grid has been conferred with five national awards for meritorious performance in
transmission sector for system availability and project completion. the awards were
presented by the hon'ble prime minister of India.

In recognition of its unique approach and contribution towards environment & social
management of issues in implementation of transmission projects through well defined
environmental and social policy & procedures . the world bank has honoured the "The
green award 2006" during the year.

HUMAN RESOURCE DEVELOPMENT:

For enhancing managerial effectiveness and as a step towards development of future

leaders,corporation is also sponsoring employees for MBA programmes.POWER GRID
has established a very rich library comprising of technical and managerial
books,journals,standard reports and other materials for easy access to the employees and
is in the process of introducing effective e-learning across the board.

[edit] External links

FINANCIAL STATEMENT

Profit loss account

Mar ' 99 Mar ' 08 Mar ' 07 Mar ' 06
 Income:
Operating income 1,709.60 4,614.82 3,589.85 3,145.34
Expenses
Material consumed 133.08 0.03 0.01 0.01
Manufacturing expenses 18.90 161.87 148.08 89.75
Personnel expenses 106.01 691.60 468.21 358.91
Selling expenses - 8.66 7.24 5.81
Adminstrative expenses 93.53 204.48 175.47 155.08
Expenses capitalised - -694.37 -197.10 -154.40
Cost of sales 351.52 372.27 601.91 455.16
Operating profit 1,358.08 4,242.55 2,987.94 2,690.18
Other recurring income 60.66 468.95 358.98 341.03
Adjusted PBDIT 1,418.74 4,711.50 3,346.92 3,031.21
Financial expenses 380.87 1,842.19 1,171.73 1,104.00
Depreciation 522.88 959.65 827.58 744.33
Other write offs 2.33 5.43 8.19 8.86
Adjusted PBT 512.66 1,904.23 1,339.42 1,174.02
Tax charges 52.61 282.07 249.53 161.84
Adjusted PAT 460.05 1,622.16 1,089.89 1,012.18
Non recurring items - -0.03 -0.13 -0.22
Other non cash adjustments -15.63 -173.66 139.61 -3.03
Reported net profit 444.42 1,448.47 1,229.37 1,008.93
Earnigs before appropriation 444.42 1,464.71 1,284.00 1,040.83
Equity dividend 20.00 505.08 368.82 302.68
Preference dividend - - - -
Dividend tax 2.20 85.84 59.26 42.44
Retained earnings 422.22 873.79 855.92 695.71

BALANCE SHEET AND RATIO ANALYSIS

Latest Quarterly/Halfyearly

Compare
Compare:
POWERGRID.NS vs Sensex Nasdaq Dow
 Splits:none

Last Trade: 89.10 Day's Range: 87.05 - 93.75

Trade Time: 1:26PM IST 52wk Range: 70.15 - 167.50

Change: 6.70 (6.99%) Volume: 1,828,230

Prev Close: 95.80 Avg Vol (3m): 3,146,250

Open: 92.30 Market Cap: N/A

Bid: 89.10 P/E (ttm): N/A

Ask: 89.20 EPS (ttm): N/A

1y Target Est: N/A Div & Yield: 1.20 (1.25%)

Power Grid Corporation of India to open office in Dubai.

The country’s largest power transmission utility, Power Grid Corp., is eyeing a stake of up to 20% in
a transmission company in the Pjilippines, at an estimated cost of $800 million. It is also setting up
an office for consultancy services in Dubai. The company has submitted an expression of interest for
picking 5-20% in Philippines’ National Transmission Company, whose total valuation is estimated at
$4 billion. The company has got the board’s approval for opening an office in the Philippines, which
would provide consultancy services from concept to commissioning of power transmission and
distribution units. The office would open in the next 10-15 days in that country and the Middle East.
 PGCIL on 31 October posted a net profit of Rs 3,71.22 crore for the three months ended 30
September. Its total income stood at Rs 1,108.10 crore for that quarter. The rise in profits was
attributed to commissioning of more projects. Till September this year the company commissioned
projects worth Rs 3,360 crore against Rs 1,779 crore in the corresponding period last year. PGCIL has
also been declared as a winning company for a transmission contract from Nigeria. The company is a
strong player in India. A stake in an overseas company would give PCGIL 18% returns a year against
14-15% in the country. We can expect good returns going forward.

Power Grid Corporation of India Limited

Segment: EQ NSE Code: POWERGRID
Paidup Value Face Value: 10 ISIN Code Listing Date
10 Market Lot: 1 INE752E01010 05-OCT-2007

LATEST SNAPSHOT 88.70 2.1m [95.80 -7.10 (-7.41%)] Sep 15 01:46PM IST
Type-Exp-Stk.Pr Open High Low Close Vol OI OI.Chg%
CA-Sep08-90.00 9.00 9.00 9.00 9.00 1 115500 0.00
F & O UPDATE As on 12th September 2008 CA-Sep08-95.00 3.50 5.00 3.00 3.40 32 136675 7.58
MOST ACTIVE futures(September 2008) for POWERGRID CA-Sep08-100.00 1.50 2.40 1.30 1.65 56 467775 0.00
CA-Sep08-105.00 0.75 0.90 0.50 0.55 7 132825 0.00
closed at 96.50 (Rs. 0.70 PREMIUM) with a turnover of CA-Sep08-110.00 0.50 0.60 0.25 0.25 3 179025 2.20
Rs. 56.60 Crores. CA-Oct08-100.00 4.80 4.85 4.80 4.85 8 40425 61.54

Adds 1026025 shares(5.46%) in open interest pushing PA-Sep08-90.00 0.65 1.00 0.55 0.90 12 96250 4.17
PA-Sep08-95.00 2.00 2.50 1.60 2.45 7 7700 100
the open interest to 19810175 shares. PA-Sep08-100.00 4.95 5.50 4.00 4.95 11 7700 300.00
PA-Oct08-100.00 7.95 7.95 7.95 7.95 1 5775 50.00

Date: 12th September 2008 View Fibonacci

Technical Chart
High: 98.40 Low: 94.25
Open: 95.50 Value: 33.15 Cr.
Volume: 3427513 10-day Avg. Vol: 2330674
52-Week Range (Low - High) : 70.15 - 167.50
Circuit Filters For Next Day: No Circuit Filters
STOCK PERFORMANCE
-2.19% in 1 Week
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18.85% in 1 Year

Intraday Chart Courtesy Yahoo! Finance

New IPO - Power Grid Corporation of India - SUBSCRIBE
Company background:

Power Grid Corporation of India Ltd (PGCIL) started operations in 1992 as a part of the
Government of India’s (GoI) initiative to consolidate all the interstate and interregional electric
power transmission assets of the country in a single entity. As on June 30, 2007, PGCIL owns
and operates 61,875 circuit kilometers of electric transmission lines and 106 electrical
substations. This makes PGCIL India’s principal electric power transmission company, which
owns and operates most of India’s interstate and inter-regional electric power transmission
systems (ISTS). In FY2007 PGCIL transmitted approximately 298 billion units of electricity,
representing approximately 45% of all the power generated in India. The GoI has entrusted
PGCIL with the statutory role of Central Transmission Utility (CTU).

PGCIL has completed 101 transmission projects on its own aggregating to a value of Rs
25,181 crore. As on June 30, 2007, the company has 45 transmission projects in various
stages of implementation and plans to invest another Rs 55,000 crore in transmission projects
during the Eleventh Five Year Plan (2007-2012). It currently manages the national power grid
with inter regional capacity of 14,100 mega watt (MW), which shall be enhanced to more than
37,000MW by 2012. The tariffs for PGCIL’s transmission projects are determined by the
Central Electricity Regulatory Commission (CERC), pursuant to the electricity and CERC
regulations. The transmission tariffs are presently determined on cost-plus tariff basis.

The company also holds stakes in public-private joint ventures established for the
development of dedicated private transmission lines. It has a 26% stake in Torrent Power Grid
and a 20.63% equity stake in Jaypee Power Grid. The partners in these ventures are Torrent
Power and Jaiprakash Hydropower respectively. The company has also developed a 2,000MW
Tala transmission project through a joint venture in which PGCIL and Tata Power Company
have a stake of 49% and 51% respectively.

Objective of the issue:

The issue of 57.39 crore equity shares (of which 38.26 crore is fresh issue and 19.13 crore is
offer for sale by the Government of India) is aimed at raising Rs 2,525.3 crore to Rs 2,984.4
crore (depending on the price band of Rs 44-52 per share). The objectives of the issue are:

• To achieve the benefit of listing the equity shares on the stock exchanges

• To meet the capital requirement for certain identified transmission projects

• For general corporate purpose

Issue details:

• Issue opens: September 10, 2007

• Issue closes: September 13, 2007

• Issue size: 57.39 crore-equity shares

• Reservation for employees: 1.39 crore shares

• Fresh issue to public: 55.99 crore shares

• Face value: Rs 10 each

• Break-up of fresh issue to public:

- QIB's portion : 27.99 crore shares

- Retail portion : 19.59 crore shares

- Non-institutional portion : 8.39 crore shares

• Price band: Rs 44-