ICM Project

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A Comparative Study on the Stock Price of Companies in

Power Sector:

1. NTPC

2. RELIANCE POWER3. TATA POWER

Submitted To:

Shegorika Lalchandani

Submitted By:

Chirag Adlakha

Laxmi Keswani

Neeta GuptaSandeep Ranjan Pattnaik

Sarada Prasan Behera

Sunny Saurabh Prashar


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ACKNOWLEDGEMENT

We owe a great many thanks to great many people who helped and

supported us in writing the project.Our deepest thanks to Shegorika Lalchandani, the guide of the project for

guiding and correcting various documents with attention and care. She has taken

pain to go through the project and make necessary correction as and when needed.

Date:-

Place: - Sd/-

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Executive Summary

The Project is on the Analysis of the Stock Price of three companies in the Power Sector. Theproject was on the task of ascertaining the fluctuation of the stock price of companies in a sector.We have taken the Power Sector for our project and the stock of Tata Power, NTPC, andReliance Power for analysis. The reason behind taking this sector for analysis was the budget

2010 in which Finance Minister doubled the allocation of investment in these sector from Rs.2130 crore to Rs. 5130 crore. And these three companies were showing a constant trend in thepost budget era of the Market. The stocks of these companies are ending flat without showing abig fluctuation in their price.

In this Project we have tried to find the fluctuation of stock price and the impact of news on thestock price of these companies. The Power sector is a sector which is at a booming stage andthese companies hold a major chunk in this sector sharing with various other players likeADANI Power, PowerGrid, and NHPC etc. These companies are going to be the major playereven in the renewable energy as there are certain companies like NTPC, Reliance Power whohave already declared to invest in this sector in different states like Orissa, Jharkhand, AndhraPradesh, Karnataka.

Introduction

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Power development in India is the key to economic development. The power sector has beenreceiving adequate priority ever since the process of planned development in 1950. Hydro powerand coal based thermal power have been the main sources of generating electricity. Nuclearpower development is at slower pace, which was introduced in late 60s. The concept ofoperating power systems on a regional basis crossing the place, the power supply industry havebeen under constant pressure to bridge the gap between supply and demand.

Since Independence in 1947, Indian Power sector progress has been rapid. From mere 1713MWs of Installed capacity in 1950 the capacity at the end of March 2007 rose to 124569excluding capacity of renewable energy. Total generation in April 2006- March 2007 was659419 GWs in the utility sector. The per capita consumption of electricity increased from 15KWHs in 1950 to 619 in 2006-07.

Decades of economic planning in India following independence placed significant emphasis onthe development of the power sector. Electricity generation capacity with utilities in India had

grown from 1713 MW in December 1950 to over 124,287 MW by March 2006.However, percapita electricity consumption remains much lower than the world average and even lower thansome of the developing Asian economies. Investment in the sector has not been able to improveaccess and keep pace with the countrys growing demand for electricity.

Impact of Budget on the Power Sector and its major players:

Decades of economic planning in India following independence placed significant emphasis onthe development of the power sector. Electricity generation capacity with utilities in India had

grown from 1713 MW in December 1950 to over 124,287 MW by March 2006.However, percapita electricity consumption remains much lower than the world average and even lower thansome of the developing Asian economies. Investment in the sector has not been able to improveaccess and keep pace with the countrys growing demand for electricity.In Union Budget 2010, Finance Minister Pranab Mukherjee raised the fund allocation to Rs.5,130 Crore from previous allocation of Rs. 2130 crore. With this the Government aims to addover 78,000 MWs by 2012. Further, other proposals such as policy reform for fuel linkages andfor lowering generation cost for thermal would ensure timely execution of projects. Thermalproject constitute 75% of energy generation.

The government also has plans to allocate more captive coal mines for the power companies.NTPC, Indias largest power generator, has said it would be able to achieve its FY10 generationtargets. Private players such as Tata Power, Reliance Power, JSW Energy, Essar Power, AdaniPower are also expected to develop coal mine linkages for their proposed generationprojects. The tax relief on import of equipment used for solar and wind energy would also attract

fresh investments into the sector. The Budget proposes to spend Rs 1,000 crore for renewableenergy and a separate fund to promote clean energy.

According to the Market Analyst, the budget 2010 with this entire gift to the power sector wouldhave a positive effect on the stock price of the company playing in this sector. The hike inminimum alternate tax to 18% would have a neutral impact, as it would be passed on to end-users. A clean energy cuss of Rs 50 per tonne will be levied on domestic and imported coal. As

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fuel costs are passed on to consumers, power tariffs are expected to raise by 2-3 paise a kwh.There will be a marginal pressure, though, on companies which sell power in the open market.The stock price of the company which we have taken for analysis showed a positive impact ofthe budget on their stock price. The change in their stock price was not remarkable but still thestock price of these companies hiked.

Players in Power Sectors in India

There are around 11 reputed companies performing in these sectors. These companies includethe PSUs and some big business houses. These companies are listed in NSE as well as BSE. Thecomparison in their market capitalization as well as financial statement is done in order to findout the current status of the sectors and the players in this sector.

CompanyName

LastPrice

MarketCap

SalesTurnover

NetProfit

TotalAsset

NTPC 207.25170,887

.25 44,126.088201.

393,562

.70

Power Grid 107.15

45,097.73 6,675.85

1,690.61

41,999.41

NHPC 30.45

37,455.76 2671.85

1,075.22

30,214.65

ReliancePower 149.45

35,820.18 248.9

13,792.81

Tata Power 1,373.65

32,581.42 7236.23 922.2

13,890.56

Adani Power 116.00

25,288.41 -1.87

7,277.74

NeyveliLignite 144.95

24,318.40 3354.91 821.09

13,526.93

RelianceInfra 999.05

22,505.63 9868.61

1,066.54

19,239.62

JSW Energy 111.85

18,344.01

TorrentPower 288.85

13,646.67 4424 405.09

6,485.70

Financial Comparison Between the Companies in this sector:

Balance

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sheet forthe yearending2008-09

B/sReliance NTPC TATA

sources offundtotal sharecap. 2396.8 8245.5 221.44Equity sharecap. 2396.8 8245.5 221.44

share appl. 0 0 0Pref. sharecap 0 0 0

reserves11396.0

150749.

48422.0

6revaluation

reserves 0 0 0

secure loan 0 8969.63931.7

1unsecuredloan 0

25598.2

1315.35

total debt 034567.

85247.0

6

total lib.13792.8

193562.

713890.

56Application OfFunds

ReliancePower NTPC

TataPower

Gross Block 78.18

62,353

.00

8,985.

86Less: Accum.Depreciation 1.58

29,415.30

3,795.32

Net Block 76.632,937

.705,190.

54Capital Workin Progress 55.84

26,404.90 761.16

Investments6,282.7

113,983

.505,443.

47

Inventories 03,243.

40 644.14SundryDebtors 0

3,584.20

1,587.97

Cash andBank Balance 14.37 271.8 45.5

Total CurrentAssets 14.37

7,099.40

2,277.61

Loans andAdvances

7,407.58

7,826.10

2,493.82

FixedDeposits 0.06

15,999.80 0

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Total CA,Loans &Advances

7,422.01

30,925.30

4,771.43

DefferedCredit 0 0 0CurrentLiabilities 43.05

7,439.20

1,624.05

Provisions 1.33,249.

50 651.99Total CL &Provisions 44.35

10,688.70

2,276.04

Net CurrentAssets

7,377.66

20,236.60

2,495.39

MiscellaneousExpenses 0 0 0

Total Assets

13,792.81

93,562.70

13,890.56

Application Of

Funds

Gross Block5015.10

59617,413

.882,757.

55Less: Accum.Depreciation

5292.3404

17,212.00

2,733.64

Reliance Power- An Overview

The Reliance power is a part of Anil Dhirubhai Ambani Groups (ADAG), incorporated inJanuary 1995 as Bawana Power Private Limited. Later the name was changed to Reliance DelhiPower Private Limited in February, 1995. In year 2004, again the name changed to ReliancePower Private Limited. The company website identifies project sites broadly to be located inwestern India (12,220 MW), northern India (9,080 MW), northern India(4,220 MW), southern

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India(4000 MW) and eastern India (3960 MW). They include seven coal-fired projects (18,880MW) to be fueled by reserves from captive mines and supplies from India and abroad, two gas-fired projects (10,280 MW) to be fueled primarily by reserves from the Krishna Godavari Basin(the "KG Basin") off the east coast of India, and seven hydroelectric projects (4,620 MW), threeof them in Arunachal Pradesh and one in Uttarakhand. Reliance Power has been successful inbagging three Ultra Mega Power Projects (3,960 MW each at Sasan in Madhya Pradesh &

Tilaiya in Jharkhand and 4,000MW at Krishnapatnam in Andhra Pradesh). The 7,480 MWproject to be located at Dadri in Uttar Pradesh is expected to be the largest gas-fired powerproject at a single location in the world. These are the area of operation and production alongwith the production capacity of Reliance Power.

The boards of directors governing the management of Reliance Power Private Limited are:

Mr. Anil Dhirubhai Ambani

He is the non-executive chairman of the company.

Shri S.L.RaoHe is the former President of the Madras Management Association (1983-84) and All

India Management Association (1985-86), (1985-86), a founder and former VicePresident of the People's Union for Civil Liberties in Tamil Nadu (1981-84). He wasFounder Chairman of the Forum of Indian Regulators.

Shri J.L. Bajaj

A former Chairman of Uttar Pradesh Electricity Regulatory Commission (UPERC). Heretired from the Indian Administrative Service as Chairman of Administrative Reformsand Decentralisation Commission, Government of Uttar Pradesh..

Dr. V.K. Chaturvedi

Dr. Chaturvedi is a former Chairman & Managing Director of Nuclear PowerCorporation of India Limited. He has also been a Member of the Atomic EnergyCommission, Government of India and Chairman of World Association of NuclearOperators (WANO), Tokyo Centre and also a Governor in the International WANOBoard, London for 2 years.

Mr.K.H. MankadMr. K.H. Mankad, aged 65 years, and Indian national, is the Whole-time Director andCEO of the Company. He is an Associate Member of the Institute of CharteredAccountants of India, an Associate Member of the Institute of Company Secretaries ofIndia and an Associate Member of the Institute of Cost and Works Accountants of India.

Dr. Yogendra NarainDr. Narain is a former Secretary-General, Rajya Sabha - the Upper House of theParliament of India. Dr. Yogendra Narain retired from the Indian Administrative Servicesafter serving for over 42 years.

Authorised Capital

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During the year under review, the authorised share capital of the Company increased to Rs15,000 crore effective from September 1, 2007. Further, pursuant to the scheme of amalgamationof Reliance Public Utility Private Limited with the Company, the authorised capital of theCompany stands increased to Rs 16,000 crore divided into 1,100 crore equity shares of facevalue Rs 10 each and 500 crore preference shares of face value Rs 10 each.

Subsidiary CompaniesDuring the year, the following companies, viz. SasanPower Limited, Maharashtra Energy

Generation Limited, Vidarbha Industries Power Limited, Tato Hydro Power Private Limited, MPPower Generation Private Limited, Siyom Hydro Power Private Limited, Urthing Sobla HydroPower Private Limited, Kalai Power Private Limited, Coastal Andhra Power Limited,Maharashtra Energy Generation Infrastructure Limited (subsidiary of Maharashtra EnergyGeneration Limited), Coastal Andhra Power Infrastructure Limited (subsidiary of CoastalAndhra Power Limited), Sasan Power Infrastructure Limited (subsidiary of Sasan PowerLimited), Sasan Power Infraventures Private Limited (subsidiary of Sasan Power Limited) andReliance Coal Resources Private Limited, have become subsidiaries of the Company.

Consolidated Financial StatementsThe audited consolidated financial statements based on the financial Statements received from

subsidiary companies, as approved by their respective board of directors, have been prepared inaccordance with the Accounting Standard (AS-21) on consolidated financial statements readwith Accounting Standard (AS-23) on accounting for investments inAssociates

AuditorsThe statutory auditors, M/s Price Waterhouse, Chartered Accountants and M/s Chaturvedi &

Shah, Chartered Accountants, retire at the conclusion of the ensuing Annual General Meetingand are eligible for re-appointment if the majority in board of directors votes for them.

Earnings and OutgoInformation in accordance with the provisions of Section 217(1)(e) of the Companies Act, 1956,

read with the Companies (Disclosures of Particulars in the Report of Board of Directors) Rules,1988 regarding conservation of energy and technology absorption are not given as the Companyhas not undertaken any manufacturing activity.Foreign Exchange Earnings and OutgoForeign Exchange earned: NilForeign Exchange used: Rs 35.41 lakh

Initial Public Offering and Controversies

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The Company with a view to raising funds for implementation of the various projects underexecution and consideration, came out with an Initial Public Offering (IPO) of 26,00,00,000equity shares of Rs 10 each for cash at a price of Rs 450 per equity share at a premium of Rs 440per equity share (Rs.420 per share for Retail Individual Investors) aggregating Rs 11,563.20crore (net of retail discount) including 3.20 crore equity shares to the Promoters of the Companyat a price of Rs 450 per share.

The Company received the clearance from the Securities and Exchange Board of India onDecember 28, 2007, and from the Registrar of Companies on January 2, 2008, for its maidenIPO. The IPO opened on January 15, 2008, and closed on January 18, 2008. The IPO, the largestin the history of the Indian capital markets, received an overwhelming response withcommitment of nearly Rs 7, 50,000 crore (US $ 190 billion) from nearly 500 institutionalinvestors across the globe and 5 million retail investors. The sheer scale and unprecedentedmagnitude of the response clearly reflected the pricing of the IPO as being in line with prevailingvaluation benchmarks and market sentiments.

Post-allotment, the Company has approximately 42 lakh shareholders. The equity shares,offered through this IPO, are listed at the Bombay Stock Exchange Limited and the National

Stock Exchange of India Limited and are traded from February 11, 2008.

Reliance Power fixed the price band at Rs. 405-450. However, in order to enable largeparticipation by retail investors, the company decided to offer a discount of Rs. 20 per share toretail investors, about 5 per cent of the issue price. It has also fixed convenient payment terms forall categories of investors.

On February 11, 2009, with a bang on the bell by Mr. Anil Dhirubhai Ambani, the IPO ofReliance Power went public. The Issue Price was Rs.450 at the opening of the market butcrashed to the price of Rs 356 at 3.20 P.M. of the same date

Time Price of Share of Reliance Power

9.55 A.M. Rs.440

10.15 A.M. Rs.449 (intra-day high)

3.20 A.M. Rs.356

The analyst was of the view for Reliance IPO that the risk assessment was incorrect and thetiming of listing of Reliance IPO was also not right. It got listed into the market when theinvestors were taking out their money from the stock market. The market was falling when theIPO got listed. For this reason after getting listed, the holders of Reliance Power IPO sold off

their holdings resulting in the fall in price from Rs.440 to Rs 356. The experts were also of theview that the market trends and fall was to be anticipated. Many of the investors of ReliancePower IPO were of unpleasant shock by this fall.

Recent News on Reliance Power

Reliance Power adds nearly 45 lakh shares in Apr series

(Thu, 25 March, 2010)Reliance Power ended up nearly 5% with a huge build-up of nearly 45 lakh shares in the Aprilseries. Patni Computers rallied nearly 6% and saw a build-up of nearly 3 lakh shares in April

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futures. McLeod Russel was up 6% today with a build-up of nearly 17.5 lakh shares in the Aprilseries. Not always you see this kind of a series happening, nearly 8.5% gains comingon Nifty and Sensex in this series. It all started with a post Budget kind of stuff which saw hugebuying coming in there. But see the kind of gains coming in, nearly 400 point gain on the Nifty,8.5% move there and the midcap index has done nearly 7.5% during the same series. All creditshould go to Reliance, Bharti. These stocks were up nearly 14% this series. HDFC Bank gained

nearly 13% this series. The Nifty rollovers stood at 60% while the stock futures rollover nearly70%, so very good expiry coming on our hands. It was a late session where we saw huge gainscoming in.

(Source: CNBC TV18)

Any Effect on Stock Price of Reliance Power

With this declaration by the company the stock price of Reliance power saw a rise of around4.32% in its price. The stock opened with Rs.143 and with a good sign in the intra-day tradingthe stock closed with Rs. 149.7. In the whole Intra-day trading, the stock reported the lowestprice of Rs. 143 at the opening of the market. Even the total volume of transaction was 3.24109more than the last day volume. The effect of news on the stock price was greater because the

nifty showed a rise of 0.26% to 5245.9 so it was not the market but he news which had a greaterimpact on the stock price.

STOCK Price of Reliance Power

Date Open ClosesDay'sHigh

Day'sLow % Change Volume

02-Mar-10 139.1 140.8 141.4 138.65 0 1,561,500

03-Mar-10 139.75 141.7 142.4 139.75 0.639204545 1,646,000

04-Mar-10 140.75 142.15 143.25 140.75 0.317572336 1,225,000

05-Mar-10 142.85 143.6 144.25 142.7 1.020049244 1,369,100

08-Mar-10 144 145.25 146.8 144 1.14902507 1,279,700

09-Mar-10 144.9 142.4 145.5 142 -1.962134251 809,500

10-Mar-10 143.2 142.65 144.9 141.8 0.175561798 696,100

11-Mar-10 142.6 141.85 142.95 141.25 -0.560813179 683,400

12-Mar-10 142 140.6 142.5 140.2 -0.881212548 759,000

15-Mar-10 140 139.1 140.75 138.6 -1.06685633 822,600

16-Mar-10 139.4 141.2 141.95 139.1 1.509705248 1,456,200

17-Mar-10 142 140.8 142.9 140.5 -0.283286119 780,400

18-Mar-10 141.15 141.1 141.85 140.45 0.213068182 645,000

19-Mar-10 141.6 141.7 143.4 141.1 0.425230333 1,385,300

22-Mar-10 141 142.3 143.45 139.6 0.423429781 1,641,400

23-Mar-10 143.1 143.5 143.75 141.5 0.843288826 1,585,300

25-Mar-10 143 149.7 148.9 143 4.320557491 5,138,100

26-Mar-10 151 148.5 152.3 148.1 -0.801603206 2,721,200

29-Mar-10 148.75 152.8 154.25 148 2.895622896 487,800

30-Mar-10 152.8 150.45 154.5 149.85 -1.537958115 2,043,600

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31-Mar-10 151.25 149.5 151.8 149.25 -0.631439016

Trend in market of daily Opening and Closing of Rel. Power

Trend in market of High and Low in daily Intra-Day transaction.

Change in price of stock

Trend in volume of Transaction

The stock price of Reliance Power has been fluctuating throughout the month starting fromRs.139.1 on 2nd March, 2010 to the closing at Rs.149.5 on 31st March, 2010. If an investor hadinvested Rs.100 in this stock then he would be getting a return of Rs.108.83. The stock is notvery hot, it is slightly higher than cold. There only five MFs companies who have the holdings ofthis stock and they have only a small holding of this stock in their funds. MFs invested in thiscompany

Scheme % of asset size

Sundaram BNP Paribas Select Focus -Institutional Plan Growth 2.47

Fortis Tax Advantage Plan (ELSS) - Growth 1.56

Fortis Tax Advantage Plan (ELSS)

Dividend 1.56

L&T Hedged Equity Fund Growth 1.44

L&T Hedged Equity Fund Dividend 1.44

The Reliance Power is good if the investor can hold for a long period of time because it is theforecast of some analyst that the stock price is going to touch the price of Rs.173 by the monthending of April. The stock gurus have also predicted that if the stock manages to cross the mark

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of Rs.156 then the stock will show a good trend in the market. Moreover the end of April will bethe time of declaration of financial report by the company and the company has shown a goodperformance for the financial year 2009-10. But through out the month, the stock will likely tofluctuate and show a trend of up and down. So it will be advisable for the investors to havepatient if they want to invest in Reliance Power stock.

NTPC An overview

NTPC was set up in 1975 to enhance the power development in India is Indias largest powergeneration company. Apart from power generation, it has involved itself in different jobs also.NTPC has already ventured into consultancy, power trading, ash utilization and coal mining.NTPC was ranked 317th in the 2009, Forbes Global 2000 ranking of the Worlds biggestcompanies. The Company has acquired 44.6% stake in Transformers and Electricals Kerala Ltd.(TELK) from Government of Kerala on June 19, 2009.

Today, NTPC is a BSE as well as NSE listed company, with 532555 as the BSE code in Group Aand NTPC as the NSE code. It forms a part of five major indices, Sensex, Nifty, BSE 100, BSE

200 and S&P CNX 500.

Production

The total installed capacity of the company is 31,134 MW (including JVs) with 15 coal basedand 7 gas based stations, located across the country. In addition under JVs, 3 stations are coalbased & another station uses naphtha/LNG as fuel. By 2017, the power generation portfolio isexpected to have a diversified fuel mix with coal based capacity of around 53000 MW, 10000MW through gas, 9000 MW through Hydro generation, about 2000 MW from nuclear sourcesand around 1000 MW from Renewable Energy Sources (RES). NTPC has adopted a multi-pronged growth strategy which includes capacity addition through green field projects,expansion of existing stations, joint ventures, subsidiaries and takeover of stations.

NTPC has been operating its plants at high efficiency levels. Although the company has 18.79%of the total national capacity it contributes 28.60% of total power generation due to its focus onhigh efficiency.

Officers and directors

R. S. Sharma Chairman of the Board, Managing Director A. K. Singhal Director - Finance, Whole-time Director

Anil Kumar Rastogi Compliance Officer, Company Secretary

R. C. Shrivastav Whole-time Director, Director - Human Resources

Chandan Roy Whole-time Director, Director Operations

I. J. Kapoor Whole-time Director,Director Commercial

B. P. Singh Director - Projects, Director

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I. C. P. Keshari Director - Representative of Government

Rakesh Jain Director - Representative of Government

M. N. Buch Independent Director

Recent FPO by NTPC:

NTPC's follow-on pubic offering (FPO) was subscribed 0.77 times on its opening day on 3rd Feb2010, Wednesday, with most of the bids at Rs 209 a share. The floor price had been fixed at Rs201 a share. The stock, which had been falling steadily since mid-January and had lost 10 percent until now, rose 1.82% on the BSE to close at Rs 209.80 on Wednesday. The retailreservation was 35% or 7.86 crore shares and brokers said that getting this portion fullysubscribed may not be easy for the company. The non-QIB segment(retail and HNI) had bid foronly 32,760 shares, the reservation for High Net worth Individuals and retail being 20.80 croreshares.

"This portion is really huge, close to Rs 1,500 crore, bigger than most of the IPOs. According toa merchant banking source, the 50% portion reserved for the Qualified Institutional Buyers(QIB) was fully subscribed. "Among the QIBs, SBI and LIC bid for shares worth Rs 4,760crore", said the source.

The 41.2-crore share issue received bids for 31.9 crore shares, of which 21.83 crore shares werebid for at Rs 209. For retail and high net worth individuals the floor price had been fixed at Rs201 while qualified institutional buyers (QIB) could bid any price above this level.At the floorprice, the issue received bids for 29.78 lakh shares while the maximum bid price was Rs 210, forwhich 24.14 lakh shares were placed. The FPO will close on February 5. Through this

divestment, the Government will offload five per cent of its stake in NTPC and its holding willcome down to 84.5%.

"The issue is mainly targeted at overseas and domestic institutional investors. There is apossibility of 10 per cent premium from the floor price of Rs 201 per share," CNI ResearchChairman and Managing Director Kishor P Ostwal said.

At the floor price of Rs 201, the government would be able to mop up Rs 8,286 crore from themarket through the issue. The government holds 89.5 per cent stake in NTPC and it plans todilute 5 per cent of this stake constituting 41.22 crore shares through its proposed FPO.

This is the first public from the country issue which is adopting the French auction route to raisefunds. Under the French auction model, institutional buyers are free to bid above a certain floor

price. The highest bidder gets preference during the allotment of shares. Under the Frenchauction method, the highest bidders get the first priority on allotment. Since state-owned firmsput in bids for the entire QIB portion (20.4 crore shares) at Rs 209, as against the base price ofRs 201, there is no point for other institutional investors to bid at lower than this price, saidanother investment banker handling the issue.

NTPC FPO was fully subscribed on Friday in spite of selling pressure in the market. At ahurriedly-called meeting on Thursday, senior officials of the department of disinvestment, powerministry and NTPC executives voiced their displeasure with the investment bankers managing

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http://www.moneycontrol.com/company-article/ntpc/news/NTPhttp://www.moneycontrol.com/company-article/ntpc/news/NTP


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the issue over the poor response from retail and foreign institutional investors.The department of disinvestment is believed to have compiled a list of institutional investors andbrokerages that have sold NTPC shares in the past one month.

Its unclear whether the government will actually probe a possible bear-hammering of the stock,but verbal assaults on short-sellers have been common in the past. For instance, in 2004, the

NDA government had pulled up senior investment bankers amid big short positions taken byclients of several leading broking houses.

In the first two days, the Rs 8,300-crore NTPC follow-on public offer was only 80% subscribed.Even 80% subscription was primarily due to state-owned insurance firms and banks, said asenior government official on condition of anonymity.

Government officials are exploring the possibility, if any, of bear-hammering of the NTPC stock,which was trading above Rs 230 in the first half of January, but closed at Rs 207 on Thursday,4 th

Feb 2010.Under market regulator Sebi's guidelines, the company has reserved 14.28 crore shares

for retail investors, aggregating to Rs 2,870 crore, at the base price of Rs 201 per share. Theretail portion alone in this issue is bigger than most of large public offers. To subscribe thisportion under the retail category, in which the maximum application amount is Rs 100,000, itneeds a minimum of 287,000 applications, said a senior investment banker.

Recent news on NTPC

The National Thermal Power Corporation (NTPC), the state owned power generator, has evincedinterest to set up solar and wind projects in Orissa with aggregate generation capacity of 500Mw.

Source- Business Standard (26 Mar 2010)

NTPC Ltd. and Gujarat Power Corporation Ltd. (GPCL) have signed a Memorandum ofUnderstanding (MoU) for development of 500 MW renewable energy based projects, preferablywind and solar energy in the state,

Source- The Hindu (22 Mar 2010)

SAIL and NTPC, two of the blue- chip PSUs; have approached the government seeking thecoveted Maharatna status that will give them greater financial autonomy.

Source- The Hindu (18 Mar 2010)

The State owned power utility NTPC Ltd has tripled the volume of natural gas it buys fromReliance Industries Ltd (RIL) at the government approved price of $4.2 per mmBtu, to 1.81million standard cubic meters a day.

Source- Business Line (18 Mar 2010)

Effects on the value of shares:15


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From the news mentioned above, we can come to a conclusion that the different issues are notable to affect the stock price. We also find that the price of the stock is stable at most of thetimes. That means on the last day of the month i.e. 31st March 2010, the stock price was highestand priced at Rs208.20. If we go through the opening and closing value of the stock then we willfind that at most of the time it lies in 202 to 203. So in an overall prospect we can say that as it isa PSU the different issues are not able to affect the share price but at some point of time it is

increasing at a good rate.

Stock price of NTPC through out the Month of March:

Date Open High Low Close Volume Adj Close % change3/31/20

10 203 208.2 202.7 207 5499000 207 1.9082133/30/20

10 203.05 203.75 202.6 203.05 2092600 203.05 0.0246243/29/20

10 202.55 203.9 201.45 203 2250300 203 0.2463053/26/20

10 201.2 203.2 201.05 202.5 1883400 202.5 1.0123463/25/20

10 203.55 203.55 198.05 200.45 7842000 200.45 -1.521583/23/20

10 203.5 204.05 201.55 203.5 2664200 203.5 0.7371013/22/20

10 203 203 200.6 202 2027800 202 -0.247523/19/20

10 202.95 203.5 201.15 202.5 1963400 202.5 0.5925933/18/20

10 203.5 203.5 201.1 201.3 1740600 201.3 -1.639343/17/20

10 203.5 205.25 202.8 204.6 2929600 204.6 0.7820143/16/20

10 201.85 203.85 201.65 203 1710200 203 0.467983/15/20

10 199.4 202.25 199.4 202.05 2384000 202.05 0.9898543/12/20

10 203.5 203.7 199.9 200.05 3083000 200.05 -1.299683/11/20

10 200.7 203.6 199.55 202.65 2673100 202.65 1.1102893/10/20

10 203.8 204.15 199.55 200.4 6485600 200.4 -1.072853/9/201

0 205.4 205.85 202.4 202.55 3182700 202.55 -1.481123/8/201

0 205.05 207.9 203.7 205.55 3224300 205.55 -0.121623/5/201

0 207.9 208.2 205.4 205.8 3458800 205.8 -0.874643/4/201

0 208 208.35 206.2 207.6 4672500 207.6 0.5298653/3/201

0 202.8 208.15 202.75 206.5 6687700 206.5 1.815981

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3/2/2010 203.4 205 202.25 202.75 2202000 202.75 -0.1233

Graphical representation of the opening and closing value of stock

TATA POWER

Brief History

Today Tata Power Company Limited is India's largest private sector electricity generating

company working in the industry of electricity generation, electricity transmission and electricity

distribution. Tata power has presence in thermal, hydro, solar and wind areas of power

generation, transmission and retail and is pioneer in the Indian power sector.

It was founded in the year 1868 by Jamshedji Tata as th key person.The Company was

incorporated on 18th September 1919, at Mumbai.The Company generate and supply Electricity.

The Tata Hydro-Electric Power System comprises the Tata Hydro-Electric Power Supply Co.,

Ltd., the Andhra Valley Power Supply Co. Ltd., and the Tata Power Co., Ltd.

Today, Tata Power is a BSE as well as NSE listed company, with 500400 as the BSE code inGroup A and TATAPOWER as the NSE code. It forms a part of five major indices, Sensex,

Nifty, BSE 100, BSE 200 and S&P CNX 500.

The management at TATA currently counts on the following names:

Name Designation

R N Tata Chairman / Chair Person

H S Vachha Director

A J Engineer Director

D M Satwalekar Director

P G Mankad Director

P R Menon Managing Director

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S Padmanabhan Executive Director

T Thomas Mathew Additional Director

N H Mirza Director

R Gopalakrishnan Director

R K Misra Nominee Director

A K Basu Director

R H Patil Director

S Ramakrishnan Executive Director

B Agrawala Executive Director

THE STOCK QOUTES OF TATA POWER for the month of March 2010

Date Open High Low Close VolumeAdjClose % change

3/31/2010 16.45 16.58 16.42 16.531199690

0 16.53 -0.48397

3/30/2010 16.55 16.69 16.39 16.611620410

0 16.61 0.301023

3/29/2010 16.48 16.68 16.47 16.561490280

0 16.56 0.120773

3/26/2010 16.34 16.57 16.31 16.542322490

0 16.54 1.330109

3/25/2010 16.17 16.59 16.14 16.322748740

0 16.32 1.409314

3/24/2010 16.1 16.2 15.92 16.09 32654500 16.09 0.372902

3/23/2010 16.34 16.34 15.97 16.033187570

0 16.03 -1.93387

3/22/2010 16.37 16.54 16.32 16.341874350

0 16.34 -0.612

3/19/2010 16.62 16.81 16.34 16.441777660

0 16.44 -0.72993

3/18/2010 16.46 16.57 16.32 16.561262620

0 16.56 0.362319

3/17/2010 16.28 16.63 16.28 16.51375460

0 16.5 0.848485

3/16/2010 16.47 16.59 16.23 16.36

1830990

0 16.36 -0.61125

3/15/2010 16.35 16.64 16.28 16.461896770

0 16.46 0.850547

3/12/2010 16.51 16.59 16.26 16.322310640

0 16.32 -1.28676

3/11/2010 16.57 16.65 16.1 16.532173290

0 16.53 -1.5729

3/10/2010 16.51 16.94 16.51 16.793308860

0 16.79 1.548541

3/9/2010 16.41 16.72 16.4 16.53 2075520 16.53 0.060496

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0

3/8/2010 16.32 16.61 16.3 16.523055400

0 16.52 2.784504

3/5/2010 15.89 16.38 15.89 16.062141500

0 16.06 1.556663

3/4/2010 15.55 15.85 15.52 15.812290600

0 15.81 1.518027

3/3/2010 15.85 15.85 15.55 15.572061380

0 15.57 -1.02762

3/2/2010 15.87 15.96 15.67 15.732010180

0 15.73 -0.38144

3/1/2010 15.43 15.83 15.4 15.791723800

0 15.79 3.039899

Graphical representation of the opening and closing value of stock

CURRENT NEWS ON THE RELATED DATES

1. Tata May Develop Geothermal Power Project in Indonesia

Tata Power may bid to develop a geothermal power project in Indonesia with the Sydney basedOrigin Energy Limited, was one of the biggest news as on 3rd March 2010 which resulted insudden hike in the stock values of Tata Power and even boomed the Nifty and Sensex.

2. India Said to Seek Bidders to Build 4,000 Megawatt Power Plant

A relevant news on 9th March 2010 saying, India will seek initial bids from companies next weekto build a 4,000 megawatt electricity generation plant as part of efforts to reduce blackouts,according to a person familiar with the matter, also hiked the stock quotes in the power sector.

The news said that Power Finance Corp., the state-run lender managing the process, will invitecompanies on March 15 to compete for the project at Surguja in eastern Chhattisgarh state, theperson said, asking not to be identified because the plan isnt public. Tata Power Co. isconstructing a facility in western India with 4,000-megwatt projects.

3. TataPower may sell 10% Bumi stake to Olympus

According to DNA of 30th March 2010, Tata Power, the countrys biggest power generator in theprivate sector, might sell 8-10% of its stake in two coal mines in Indonesia for $300 million.Speculations have been rife for some time over Tata Powers plan to sell its stake in the minesbut the company has maintained that there is no such thing on cards.

4. Tata Power awaits MERC clearance on tariff raise

Tata Power has filled a petition with the Maharastra Electricity Regulatory Commission for anaverage rise of 19% to 35% in electricity tariff of credentials and commercial consumers inMumbai for the year 2010-11.Tata Power gained 1.45% at Bombay Stock Exchange closing at1354.6 on 23rd March trade.

5. Tata Power plans to raise funds from asset sale

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It was in news on 30th March 2010 that Tata Power is looking to sell some of its non core assetsto raise about 100 billion rupees in the next six to twelve months to boost power generationcapacity. The capital raised from assets sale will be used to help achieve a power generationcapacity target of 25,000 megawatts by financial year 2017.

REFERENCES ARE:-

1) http://www.moneycontrol.com/competition/reliancepower/comparison/RP - accessed on 29th

March at 9.30 p.m.

2) http://economictimes.indiatimes.com/markets/ipos/NTPC-FPO-fully-

subscribed/articleshow/5538416.cms- accessed on 28th March at 7.48 p.m.

3) http://in.finance.yahoo.com/q/hp?s=NTPC.NS accessed on 1st April at 11.46 a.m.

4) http://finance.yahoo.com/q/hp?s=yhoo accessed on 1st April at 12.15 p.m.

5) http://www.moneycontrol.com/company-article/ntpc/news/NTP - accessed on

25th March at 8.29 p.m.

20
http://www.moneycontrol.com/competition/reliancepower/comparison/RPhttp://economictimes.indiatimes.com/markets/ipos/NTPC-FPO-fully-subscribed/articleshow/5538416.cmshttp://economictimes.indiatimes.com/markets/ipos/NTPC-FPO-fully-subscribed/articleshow/5538416.cmshttp://in.finance.yahoo.com/q/hp?s=NTPC.NShttp://finance.yahoo.com/q/hp?s=yhoohttp://www.moneycontrol.com/company-article/ntpc/news/NTPhttp://www.moneycontrol.com/competition/reliancepower/comparison/RPhttp://economictimes.indiatimes.com/markets/ipos/NTPC-FPO-fully-subscribed/articleshow/5538416.cmshttp://economictimes.indiatimes.com/markets/ipos/NTPC-FPO-fully-subscribed/articleshow/5538416.cmshttp://in.finance.yahoo.com/q/hp?s=NTPC.NShttp://finance.yahoo.com/q/hp?s=yhoohttp://www.moneycontrol.com/company-article/ntpc/news/NTP

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