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CAPITAL STRUCTURE
EQUITY ₹ crores DEBT Average Rate ₹ crores
Equity Share Capital 319.56 Unsecured Non-Convertible Debentures 9.90% 4101.8
Other Equity 13380.03 Unsecured Term Loans from Banks 9.90% 2353.32
TOTAL EQUITY 13699.59 Secured Non-Convertible Debentures 9.15% 230.44
Secured Term Loans from Banks 9.90% 4586.74
Weight of Equity 0.5486 TOTAL DEBT 11272.3
Weight of Debt 0.4514
COST OF EQUITY (Ke)
1
Rf = Risk Free Rate (10 Year G-Sec) 7.18%
Rm = Market Rate (BSE Sensex 10 Year CAGR)2 11.94%
3
B = Beta 0.54
Ke = Rf + B (Rm - Rf) 9.75%
1
WORKING NOTES (WN)
Note:
1. All the latest company specific financial data in this report is taken from Annual Report (2022-23) of Tata Power from official website of Tata Power.
2. All the historic data for both company (Tata Power) and index (BSE Sensex) is taken from BSE historical archives section on official website of BSE.
3. Calculation of Beta is done by the author himself by means of Statistical Tools and the value is not taken from any third party sources.
4. Average rate of debt is considered for all kind of debt.
Disclaimer: This report is meant for educational purposes only. The author of this report is not liable for any losses due to actions taken on basis of this report.