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Investor Relations Management Update August FY15


Share Price Movements

• Tata Power, down by 11% performed as bad as most of its peers in the last month.

Summary – Share Price Movement

Tata Power Stock Price

52-Week High

52-Week Low

115.3

67.4

Reliance Power (19)%

Adani Power (16)%

JSPL (15)%

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Summary – Investors & Analysts Meetings

Analyst Reports

• Currently 39 analysts are listed on Bloomberg

• 6 of 39 analysts have a Sell / Reduce / Underperform rating on Tata Power with price targets Rs. 65-75. Most

other analysts have a price target of Rs. 80-125 per share with either a Buy or Hold rating.

Key Investor/Analyst Meetings Held in August FY15:

Firm Designation Representative of Firm Representative of Company

1 First State Investments Portfolio Manager Sashi Reddy Sanjay Dube, Nandakumar Tirumalai,

Anirudh Mani

2 General Insurance

Corporation of India AGM, DGM Praveen Gandhi, S Tripathy Nandakumar Tirumalai, Anirudh Mani

3 Matthews Pacific Portfolio Manager,

Analyst Sharat Shroff , Rahul Gupta

Ramesh Subramanyam, Nandakumar

Tirumalai

4 LIC Executive Director

(Investments) R Thamodharan Nandakumar Tirumalai, Anirudh Mani

5 T Rowe Price Sanjay Dube, Nandakumar Tirumalai

6 Fortune Investment Analyst Nihar Shah Anirudh Mani

7 GIC Analyst Ken Lim Sanjay Dube, Anirudh Mani

8 ADIA Investment Manager Ravi Bhatia Nandakumar Tirumalai, Anirudh Mani

9 New India Assurance CIO K R Sethuraman Nandakumar Tirumalai, Anirudh Mani

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Summary – Investors & Analysts Meetings

Key conferences attended in August FY15

Firm Investors Met Representative of Company

1 Retail investors Anil Sardana, Ashok Sethi, Ramesh

Subramanyam

2 Motilal Oswal Global

Investor Conference

ICICI Bank, IDBI Federal Insurance, Star

Union Insurance, J P Morgan AM,

Schroders, Axis MF, Bajaj Allianz, Birla Sun

Life, HDFC AM, ICICI Prudential, IDFC MF,

Karma Capital, Subhkam Ventures, Invesco

Advisors, Exide Life Insurance, ICICI

Lombard, India First Life, PNB Metlife

Nandakumar Tirumalai, Anirudh Mani

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Summary – Investors & Analysts Queries

Investor Queries / Concerns

• Tata Power Standalone

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

• SED business and Tata Power’s role in manufacturing of weapons systems

• Growth plans of the Company in the next 3-5 years and possible source of funding

• CGPL

• Likely date of settlement in ATE and further course after stay order issued by SC

• Whether Compensatory tariff has been billed by CGPL to procurers and whether payment has come

• Inclusion of compensatory tariff in Q2FY15 results

• Coal SPVs

• Likely date of completion of Arutmin sale and timeline for getting money from Bumi and use of proceeds

• Likely sale of KPC also by Tata Power and reasons for holding on to coal asset

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Shareholding Pattern – Last 6 months

S.No. Group Description Percentage to Capital

Aug 2014 Jul 2014 Jun 2014 May 2014 Apr 2014 Mar 2014

1 Promoter Holdings 33.04 33.04 33.04 33.04 33.04 32.47

2 Foreign Holdings 29.61 29.92 29.77 29.52 30.50 30.18

3 Insurance Companies 20.89 21.11 21.39 21.36 20.85 20.99

4 Mutual Funds 1.20 1.05 1.11 1.05 0.73 0.83

5 State Financial Corporations 0.02 0.02 0.03 0.03 0.03 0.03

6 Banks 0.55 0.46 0.41 0.36 0.39 0.42

7 Other bodies Corporates 1.19 1.09 1.00 1.36 1.14 1.17

8 Individuals 13.50 13.31 13.26 13.27 13.32 13.91

Grand Total 100.00 100.00 100.00 100.00 100.00 100.00

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Top 10 FIIs (Aug 2014)

Name of Shareholder % of Holding

First State 9.99

Matthews Pacific 5.76

Aberdeen 2.03

Blackrock Fund 1.67

Abu Dhabi Investment Authority 1.13

Vanguard 1.02

Government of Singapore 0.84

Credit Suisee (Singapore) Limited 0.36

Retail Employees Superannuation Trust 0.34

Copthall 0.34

Total 23.48

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Top 10 Buyers (Aug 2014)

Name of Shareholder Units Bought

(lakhs)

Value Bought

(Rs. Crs.) *

% of Holdings

(31-Aug-2014)

Matthews Pacific Tiger Fund 35.3 32.7 5.51

JM Financial Mutual Fund 35.2 32.5 0.13

Kuwait Investment Authority Fund 227 14.0 13.0 0.05

The Master Trust Bank Of Japan 9.5 8.8 0.04

Axis Bank Limited 9.5 8.8 0.04

Citibank N.A. 8.2 7.6 0.03

Matthews Asia Funds - Pacific Tiger 7.7 7.1 0.25

IDBI Bank Ltd. 7.5 6.9 0.04

Hongkong Bank 7.2 6.7 0.03

Uti Multi Cap Fund 5.7 5.3 0.02

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* Average Share price at which shares bought assumed at Rs. 92.5 per share


Top 10 Sellers (Aug 2014)

Name of Shareholder Units Sold

(lakhs)

Value Sold

(Rs. Crs.) *

% of Holdings

(31-Aug-2014)

Morgan Stanley Mauritius Company Limited 46.4 42.9 0.09

Government Of Singapore 44.0 40.7 0.65

Birla Sun Life Insurance Company Limited 37.0 34.3 0.29

SBI Life Insurance Co. Ltd 33.4 30.9 0.34

GMO Emerging Domestic Opportunities

Fund 25.6 23.6 0.00

Fidelity Investment Trust 16.6 15.4 0.00

Monetary Authority Of Singapore 15.9 14.7 0.18

Exide Life Insurance Company Limited 11.2 10.4 0.04

Goldman Sachs Investments (Mauritius) 9.2 8.5 0.10

Future Fund Board Of Guardians 7.1 6.6 0.00

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* Average Share price at which shares bought assumed at Rs. 92.5 per share


Summary – Competition Updates Power Projects

• R Power has commissioned the 5th 660 MW unit at Sasan UMPP

• Adani plans to sign a pact with Odisha government for setting up of 2,500MW plant

• Nepal government is likely to sign a pact for 900 MW Upper Karnali hydropower project with GMR

Funding

• Adani Power's Tiroda and Kawai projects have won a reprieve from lenders led by SBI, which have agreed to lower

the equity requirement and provide more loans to the two projects

• JSPL plans to exit from oil and gas business and reduce debt by selling stakes in some projects

• R Power is in discussions with Temasek Holdings to raise up to US$ 500 mn for funding its acquisition of JPVL’s hydro

projects

M&A

• Hinduja Group is planning to invest US$ 10 bn for reviving stalled power plants, road and other infra projects in India

• JSW Energy is interested to acquire JPVL’s Bina (500MW) and Nigrie (1320 MW) thermal power plants

• Lanco Infratech aims to raise Rs 200 bn by selling 3,000 MW of power plants

• Adani Power has acquired Lanco’s 1,200 MW Udupi power plant for a valuation of Rs 60 bn

• NTPC may acquire 7-8 GW of stressed thermal power assets

• Uttarakhand government has ruled out buying JPVL’s 440 MW Vishnuprayag hydro power project

Other

• MERC has approved a comp tariff of Rs0.95/unit towards fuel cost under recovery Adani Power’s Tiroda plant due to

the shortage of domestic coal

• Punjab State Electricity Regulator Commission announced tariff hike of 2.74% for 2014-15

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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 7 19 28 7% 25% 68% 100% 6 11 11

CESC 18 7 3 28 64% 25% 11% 100% 6 5 3

JSPL 18 8 4 30 60% 27% 13% 100% 5 5 4

JSW 13 6 12 31 42% 19% 39% 100% 4 7 7

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

NHPC 8 8 8 24 33% 33% 33% 100% 8 8 8

NTPC 21 16 8 45 47% 36% 18% 100% 2 3 6

Power Grid 40 5 2 47 85% 11% 4% 100% 1 1 2

PTC 19 2 1 22 86% 9% 5% 100% 9 4 1

Reliance Power 4 3 13 20 20% 15% 65% 100% 10 9 10

Tata Power 22 11 6 39 56% 28% 15% 100% 3 2 5

Total – Sector 168 74 82 324 52% 23% 25% 100%

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Stock Price Summary

BSE Power

Index

Tata

Power

Reliance

Power NTPC JSPL

Adani

Power Lanco CESC NHPC Powergrid

31/07/2014 25895 2134 98.0 92.5 145.0 275.0 56.6 9.3 646.0 22.9 132.8

28/08/2014 26638 2042 86.9 74.6 137.7 233.3 47.4 8.4 695.1 21.7 129.3

Movement 2.9% (4.3)% (11.3)% (19.4)% (5.0)% (15.2)% (16.3)% (9.0)% 7.6% (5.0)% (2.6)%

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Firm Name Analyst Recommendation Target Date

Ambit Capital Pvt Ltd Bhargav Buddhadev buy 111 09/03/14

Axis Capital Limited Bhavin Vithlani buy 104 08/28/14

ICICIdirect.com Chirag J Shah buy 107 08/28/14

BNP Paribas Equity Research Girish Nair reduce 65 08/26/14

IndiaNivesh Securities Pvt Ltd Abhishek Jain buy 104 08/26/14

HSBC Arun Kumar Singh overweight 125 08/18/14

CIMB Harish Bihani add 96.5 08/16/14

IDFC Securities Ltd Shirish Rane neutral 100 08/14/14

Antique Stock Broking Limited Rahul Modi hold 101 08/14/14

Centrum Broking Pvt Ltd Sachin Mehta hold 85 08/13/14

HDFC Securities Abhinav Sharma neutral 95 08/13/14

Motilal Oswal Securities Ltd Nalin Bhatt neutral 96 08/13/14

Macquarie Inderjeet Singh Bhatia outperform 101 08/13/14

Batlivala & Karani Securities Vishal Biraia outperform 107 08/13/14

IIFL Harshvardhan S Dole buy 110 08/13/14

Goldman Sachs Pulkit Patni neutral/cautious 111 08/13/14

JPMorgan Sumit Kishore overweight 111 08/13/14

Karvy Stock Broking Ltd Rupesh D Sankhe buy 116 08/13/14

JM Financial Institutional Securities Pvt. Ltd Subhadip Mitra hold 87 08/12/14

Emkay Share & Stock Brokers Amit Golchha sell 88 08/12/14

Barclays Venugopal Garre equalweight 95 08/12/14

ICICI Securities Prakash Gaurav Goel add 101 08/12/14

Kotak Securities Murtuza Arsiwalla add 102 08/12/14

Quant Broking Pvt Ltd Abhineet Anand buy 103 08/12/14

Deutsche Bank Abhishek Puri buy 112 08/12/14

Edelweiss Capital Shankar K buy 115 08/12/14

Fortune Equity Brokers (India) Ltd Team Coverage buy 77.2 08/07/13

Standard Chartered Jay Kakkad outperform 105 07/23/14

Jefferies Lavina Quadros buy 105 07/07/14

UBS Pankaj Sharma buy 130 07/01/14

Analyst Report Summary

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