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

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based

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the

fundamental

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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 Selling investing stocks in such stocks based you are on making the a long-term investment. analysis

fundamental

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 the price for the stock has been over sell: evaluated - a newsflash about a company or about the entire economic area modifies initial expectations - 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 Font Size Print Feedback Email Discuss Save & Share Article Digg del.icio.us What’s this? My Yahoo Newsvine Fark Reddit

Rate This Article Rating: 3 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 20052006.1 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 lowrisk, 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 Material consumed Manufacturing expenses Personnel expenses Selling expenses Adminstrative expenses Expenses capitalised Cost of sales Operating profit Other recurring income Adjusted PBDIT Financial expenses Depreciation Other write offs Adjusted PBT Tax charges Adjusted PAT Non recurring items Other non cash adjustments Reported net profit Earnigs before appropriation Equity dividend Preference dividend Dividend tax Retained earnings 1,709.60 Expenses 133.08 18.90 106.01 93.53 351.52 1,358.08 60.66 1,418.74 380.87 522.88 2.33 512.66 52.61 460.05 -15.63 444.42 444.42 20.00 2.20 422.22 0.03 161.87 691.60 8.66 204.48 -694.37 372.27 4,242.55 468.95 4,711.50 1,842.19 959.65 5.43 1,904.23 282.07 1,622.16 -0.03 -173.66 1,448.47 1,464.71 505.08 85.84 873.79 0.01 148.08 468.21 7.24 175.47 -197.10 601.91 2,987.94 358.98 3,346.92 1,171.73 827.58 8.19 1,339.42 249.53 1,089.89 -0.13 139.61 1,229.37 1,284.00 368.82 59.26 855.92 0.01 89.75 358.91 5.81 155.08 -154.40 455.16 2,690.18 341.03 3,031.21 1,104.00 744.33 8.86 1,174.02 161.84 1,012.18 -0.22 -3.03 1,008.93 1,040.83 302.68 42.44 695.71 4,614.82 3,589.85 3,145.34

BALANCE SHEET AND RATIO ANALYSIS
Latest Quarterly/Halfyearly

Compare:

POWERGRID.NS vs

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Last Trade: Trade Time: Change: Prev Close: Open: Bid: Ask: 1y Target Est:

89.10
1:26PM IST 6.70 (6.99%) 95.80 92.30 89.10 89.20 N/A

Day's Range: 52wk Range: Volume: Avg Vol (3m): Market Cap: P/E (ttm): EPS (ttm): Div & Yield:

87.05 - 93.75 70.15 - 167.50 1,828,230 3,146,250 N/A N/A N/A 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
Paidup Value 10 Segment: EQ NSE Code: POWERGRID Face Value: 10 ISIN Code Market Lot: 1 INE752E01010 Listing Date 05-OCT-2007 Sep 15 01:46PM IST
Vol 1 32 56 7 3 8 12 7 11 1 OI 115500 136675 467775 132825 179025 40425 96250 7700 7700 5775 OI.Chg% 0.00 7.58 0.00 0.00 2.20 61.54 4.17 100 300.00 50.00

LATEST SNAPSHOT F & O UPDATE

88.70 2.1m [95.80 -7.10 (-7.41%)]
Type-Exp-Stk.Pr CA-Sep08-90.00 Open 9.00 3.50 1.50 0.75 0.50 4.80 0.65 2.00 4.95 PA-Oct08-100.00 7.95 High 9.00 5.00 2.40 0.90 0.60 4.85 1.00 2.50 5.50 7.95 Low 9.00 3.00 1.30 0.50 0.25 4.80 0.55 1.60 4.00 7.95 Close 9.00 3.40 1.65 0.55 0.25 4.85 0.90 2.45 4.95 7.95

As on 12th September 2008 CA-Sep08-95.00 MOST ACTIVE futures(September 2008) for POWERGRID CA-Sep08-100.00 CA-Sep08-105.00 closed at 96.50 (Rs. 0.70 PREMIUM) with a turnover of CA-Sep08-110.00 Rs. 56.60 Crores. CA-Oct08-100.00 PA-Sep08-90.00 Adds 1026025 shares(5.46%) in open interest pushing PA-Sep08-95.00 the open interest to 19810175 shares. PA-Sep08-100.00

Date: 12th September 2008

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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 -1.79% in 1 Month

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-

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