A Comparative Study on the Stock Price of Companies in

Power Sector:
1. NTPC
2. RELIANCE POWER
3. TATA POWER

Submitted To:
Shegorika Lalchandani
Submitted By:
Chirag Adlakha
Laxmi Keswani
Neeta Gupta
Sandeep Ranjan Pattnaik
Sarada Prasan Behera
Sunny Saurabh Prashar
 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/-

2
Executive Summary
The Project is on the Analysis of the Stock Price of three companies in the Power Sector. The
project 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, and
Reliance 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 the
post budget era of the Market. The stocks of these companies are ending flat without showing a
big fluctuation in their price.
In this Project we have tried to find the fluctuation of stock price and the impact of news on the
stock price of these companies. The Power sector is a sector which is at a booming stage and
these companies hold a major chunk in this sector sharing with various other players like
ADANI Power, PowerGrid, and NHPC etc. These companies are going to be the major player
even in the renewable energy as there are certain companies like NTPC, Reliance Power who
have already declared to invest in this sector in different states like Orissa, Jharkhand, Andhra
Pradesh, Karnataka.

Introduction

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Power development in India is the key to economic development. The power sector has been
receiving adequate priority ever since the process of planned development in 1950. Hydro power
and coal based thermal power have been the main sources of generating electricity. Nuclear
power development is at slower pace, which was introduced in late 60’s. The concept of
operating power systems on a regional basis crossing the place, the power supply industry have
been under constant pressure to bridge the gap between supply and demand.
Since Independence in 1947, Indian Power sector progress has been rapid. From mere 1713
MWs of Installed capacity in 1950 the capacity at the end of March 2007 rose to 124569
excluding capacity of renewable energy. Total generation in April 2006- March 2007 was
659419 GWs in the utility sector. The per capita consumption of electricity increased from 15
KWHs in 1950 to 619 in 2006-07.
Decades of economic planning in India following independence placed significant emphasis on
the 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, per
capita electricity consumption remains much lower than the world average and even lower than
some of the developing Asian economies. Investment in the sector has not been able to improve
access and keep pace with the country’s 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 on
the 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, per
capita electricity consumption remains much lower than the world average and even lower than
some of the developing Asian economies. Investment in the sector has not been able to improve
access and keep pace with the country’s 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 add
over 78,000 MWs by 2012. Further, other proposals such as policy reform for fuel linkages and
for lowering generation cost for thermal would ensure timely execution of projects. Thermal
project constitute 75% of energy generation.

The government also has plans to allocate more captive coal mines for the power companies.
NTPC, India’s largest power generator, has said it would be able to achieve its FY10 generation
targets. Private players such as Tata Power, Reliance Power, JSW Energy, Essar Power, Adani
Power are also expected to develop coal mine linkages for their proposed generation
projects. 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 renewable
energy and a separate fund to promote clean energy.

According to the Market Analyst, the budget 2010 with this entire gift to the power sector would
have a positive effect on the stock price of the company playing in this sector. The hike in
minimum 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
4
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 of
the budget on their stock price. The change in their stock price was not remarkable but still the
stock price of these companies hiked.

Players in Power Sectors in India

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

Company Last Market Sales Net Total

Name Price Cap Turnover Profit Asset

170,887 8201. 93,562

NTPC 207.25 .25 44,126.08 3 .70
45,097.7 1,690.6 41,999.
Power Grid 107.15 3 6,675.85 1 41
37,455.7 1,075.2 30,214.
NHPC 30.45 6 2671.85 2 65
Reliance 35,820. 13,792
Power 149.45 18 248.9 .81
32,581. 13,890
Tata Power 1,373.65 42 7236.23 922.2 .56
25,288.4 7,277.7
Adani Power 116.00 1 -1.87 4
Neyveli 24,318.4 13,526.
Lignite 144.95 0 3354.91 821.09 93
Reliance 22,505.6 1,066.5 19,239.
Infra 999.05 3 9868.61 4 62
18,344.0
JSW Energy 111.85 1
Torrent 13,646.6 6,485.7
Power 288.85 7 4424 405.09 0

Financial Comparison Between the Companies in this sector:

Balance

5
sheet for
the year
ending
2008-09
Relianc
B/s e NTPC TATA
sources of
fund
total share
cap. 2396.8 8245.5 221.44
Equity share
cap. 2396.8 8245.5 221.44
share appl. 0 0 0
Pref. share
cap 0 0 0
11396.0 50749. 8422.0
reserves 1 4 6
revaluation
reserves 0 0 0
3931.7
secure loan 0 8969.6 1
unsecured 25598. 1315.3
loan 0 2 5
34567. 5247.0
total debt 0 8 6
13792.8 93562. 13890.
total lib. 1 7 56
Application Of Reliance Tata
Funds Power NTPC Power
62,353 8,985.
Gross Block 78.18 .00 86
Less: Accum. 29,415 3,795.
Depreciation 1.58 .30 32
32,937 5,190.
Net Block 76.6 .70 54
Capital Work 26,404
in Progress 55.84 .90 761.16
6,282.7 13,983 5,443.
Investments 1 .50 47
3,243.
Inventories 0 40 644.14
Sundry 3,584. 1,587.
Debtors 0 20 97
Cash and
Bank Balance 14.37 271.8 45.5
Total Current 7,099. 2,277.
Assets 14.37 40 61
Loans and 7,407.5 7,826. 2,493.
Advances 8 10 82
Fixed 15,999
Deposits 0.06 .80 0
6
Total CA,
Loans & 7,422.0 30,925 4,771.
Advances 1 .30 43
Deffered
Credit 0 0 0
Current 7,439. 1,624.
Liabilities 43.05 20 05
3,249.
Provisions 1.3 50 651.99
Total CL & 10,688 2,276.
Provisions 44.35 .70 04
Net Current 7,377.6 20,236 2,495.
Assets 6 .60 39
Miscellaneous
Expenses 0 0 0
13,792. 93,562 13,890
Total Assets 81 .70 .56
Application Of
Funds
5015.10 17,413 2,757.
Gross Block 596 .88 55
Less: Accum. 5292.34 17,212 2,733.
Depreciation 04 .00 64

Reliance Power- An Overview

The Reliance power is a part of Anil Dhirubhai Ambani Groups (ADAG), incorporated in
January 1995 as Bawana Power Private Limited. Later the name was changed to Reliance Delhi
Power Private Limited in February, 1995. In year 2004, again the name changed to Reliance
Power Private Limited. The company website identifies project sites broadly to be located in
western India (12,220 MW), northern India (9,080 MW), northern India(4,220 MW), southern
7
India(4000 MW) and eastern India (3960 MW). They include seven coal-fired projects (18,880
MW) 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), three
of them in Arunachal Pradesh and one in Uttarakhand. Reliance Power has been successful in
bagging 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 MW
project to be located at Dadri in Uttar Pradesh is expected to be the largest gas-fired power
project at a single location in the world. These are the area of operation and production along
with 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.Rao
He is the former President of the Madras Management Association (1983-84) and All
India Management Association (1985-86), (1985-86), a founder and former Vice
President of the People's Union for Civil Liberties in Tamil Nadu (1981-84). He was
Founder Chairman of the Forum of Indian Regulators.

• Shri J.L. Bajaj

A former Chairman of Uttar Pradesh Electricity Regulatory Commission (UPERC). He
retired from the Indian Administrative Service as Chairman of Administrative Reforms
and Decentralisation Commission, Government of Uttar Pradesh..
• Dr. V.K. Chaturvedi
Dr. Chaturvedi is a former Chairman & Managing Director of Nuclear Power
Corporation of India Limited. He has also been a Member of the Atomic Energy
Commission, Government of India and Chairman of World Association of Nuclear
Operators (WANO), Tokyo Centre and also a Governor in the International WANO
Board, London for 2 years.
• Mr.K.H. Mankad
Mr. K.H. Mankad, aged 65 years, and Indian national, is the Whole-time Director and
CEO of the Company. He is an Associate Member of the Institute of Chartered
Accountants of India, an Associate Member of the Institute of Company Secretaries of
India and an Associate Member of the Institute of Cost and Works Accountants of India.

• Dr. Yogendra Narain

Dr. Narain is a former Secretary-General, Rajya Sabha - the Upper House of the
Parliament of India. Dr. Yogendra Narain retired from the Indian Administrative Services
after 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 Rs
15,000 crore effective from September 1, 2007. Further, pursuant to the scheme of amalgamation
of Reliance Public Utility Private Limited with the Company, the authorised capital of the
Company stands increased to Rs 16,000 crore divided into 1,100 crore equity shares of face
value Rs 10 each and 500 crore preference shares of face value Rs 10 each.

Subsidiary Companies
During the year, the following companies, viz. SasanPower Limited, Maharashtra Energy
Generation Limited, Vidarbha Industries Power Limited, Tato Hydro Power Private Limited, MP
Power Generation Private Limited, Siyom Hydro Power Private Limited, Urthing Sobla Hydro
Power Private Limited, Kalai Power Private Limited, Coastal Andhra Power Limited,
Maharashtra Energy Generation Infrastructure Limited (subsidiary of Maharashtra Energy
Generation Limited), Coastal Andhra Power Infrastructure Limited (subsidiary of Coastal
Andhra Power Limited), Sasan Power Infrastructure Limited (subsidiary of Sasan Power
Limited), Sasan Power Infraventures Private Limited (subsidiary of Sasan Power Limited) and
Reliance Coal Resources Private Limited, have become subsidiaries of the Company.

Consolidated Financial Statements

The audited consolidated financial statements based on the financial Statements received from
subsidiary companies, as approved by their respective board of directors, have been prepared in
accordance with the Accounting Standard (AS-21) on consolidated financial statements read
with Accounting Standard (AS-23) on accounting for investments in
Associates

Auditors
The statutory auditors, M/s Price Waterhouse, Chartered Accountants and M/s Chaturvedi &
Shah, Chartered Accountants, retire at the conclusion of the ensuing Annual General Meeting
and are eligible for re-appointment if the majority in board of directors votes for them.

Earnings and Outgo

Information 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 Company
has not undertaken any manufacturing activity.

Foreign Exchange Earnings and Outgo

Foreign Exchange earned: Nil

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

The Company received the clearance from the Securities and Exchange Board of India on
December 28, 2007, and from the Registrar of Companies on January 2, 2008, for its maiden
IPO. The IPO opened on January 15, 2008, and closed on January 18, 2008. The IPO, the largest
in the history of the Indian capital markets, received an overwhelming response with
commitment of nearly Rs 7, 50,000 crore (US $ 190 billion) from nearly 500 institutional
investors across the globe and 5 million retail investors. The sheer scale and unprecedented
magnitude of the response clearly reflected the pricing of the IPO as being in line with prevailing
valuation 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 large
participation by retail investors, the company decided to offer a discount of Rs. 20 per share to
retail investors, about 5 per cent of the issue price. It has also fixed convenient payment terms for
all categories of investors.
On February 11, 2009, with a bang on the bell by Mr. Anil Dhirubhai Ambani, the IPO of
Reliance Power went public. The Issue Price was Rs.450 at the opening of the market but
crashed 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 the
timing of listing of Reliance IPO was also not right. It got listed into the market when the
investors were taking out their money from the stock market. The market was falling when the
IPO 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 the
view that the market trends and fall was to be anticipated. Many of the investors of Reliance
Power 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 April
series. Patni Computers rallied nearly 6% and saw a build-up of nearly 3 lakh shares in April
10
 futures. McLeod Russel was up 6% today with a build-up of nearly 17.5 lakh shares in the April
series. Not always you see this kind of a series happening, nearly 8.5% gains coming
on Nifty and Sensex in this series. It all started with a post Budget kind of stuff which saw huge
buying 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 credit
should 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 nearly
70%, so very good expiry coming on our hands. It was a late session where we saw huge gains
coming 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 around
4.32% in its price. The stock opened with Rs.143 and with a good sign in the intra-day trading
the stock closed with Rs. 149.7. In the whole Intra-day trading, the stock reported the lowest
price of Rs. 143 at the opening of the market. Even the total volume of transaction was 3.24109
more 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 greater
impact on the stock price.

STOCK Price of Reliance Power

Day's Day's
Date Open Closes High Low % 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 from
Rs.139.1 on 2nd March, 2010 to the closing at Rs.149.5 on 31st March, 2010. If an investor had
invested Rs.100 in this stock then he would be getting a return of Rs.108.83. The stock is not
very hot, it is slightly higher than cold. There only five MFs companies who have the holdings of
this stock and they have only a small holding of this stock in their funds. MFs invested in this
company

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 the
forecast of some analyst that the stock price is going to touch the price of Rs.173 by the month
ending of April. The stock gurus have also predicted that if the stock manages to cross the mark
12
of Rs.156 then the stock will show a good trend in the market. Moreover the end of April will be
the time of declaration of financial report by the company and the company has shown a good
performance for the financial year 2009-10. But through out the month, the stock will likely to
fluctuate and show a trend of up and down. So it will be advisable for the investors to have
patient 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 India’s largest power
generation 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 World’s biggest
companies. 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 A 
and 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 based
and 7 gas based stations, located across the country. In addition under JVs, 3 stations are coal
based & another station uses naphtha/LNG as fuel. By 2017, the power generation portfolio is
expected to have a diversified fuel mix with coal based capacity of around 53000 MW, 10000
MW through gas, 9000 MW through Hydro generation, about 2000 MW from nuclear sources
and 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 on
high 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 Feb
2010, Wednesday, with most of the bids at Rs 209 a share. The floor price had been fixed at Rs
201 a share. The stock, which had been falling steadily since mid-January and had lost 10 per
cent until now, rose 1.82% on the BSE to close at Rs 209.80 on Wednesday. The retail
reservation was 35% or 7.86 crore shares and brokers said that getting this portion fully
subscribed may not be easy for the company. The non-QIB segment(retail and HNI) had bid for
only 32,760 shares, the reservation for High Net worth Individuals and retail being 20.80 crore
shares.

"This portion is really huge, close to Rs 1,500 crore, bigger than most of the IPOs. According to
a 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 4,760
crore", said the source.

The 41.2-crore share issue received bids for 31.9 crore shares, of which 21.83 crore shares were
bid for at Rs 209. For retail and high net worth individuals the floor price had been fixed at Rs
201 while qualified institutional buyers (QIB) could bid any price above this level.At the floor
price, the issue received bids for 29.78 lakh shares while the maximum bid price was Rs 210, for
which 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 will
come down to 84.5%.
"The issue is mainly targeted at overseas and domestic institutional investors. There is a
possibility of 10 per cent premium from the floor price of Rs 201 per share," CNI Research
Chairman 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 the
market through the issue. The government holds 89.5 per cent stake in NTPC and it plans to
dilute 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 raise
funds. 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 French
auction method, the highest bidders get the first priority on allotment. Since state-owned firms
put in bids for the entire QIB portion (20.4 crore shares) at Rs 209, as against the base price of
Rs 201, there is no point for other institutional investors to bid at lower than this price, said
another investment banker handling the issue.

NTPC FPO was fully subscribed on Friday in spite of selling pressure in the market. At a
hurriedly-called meeting on Thursday, senior officials of the department of disinvestment, power
ministry and NTPC executives voiced their displeasure with the investment bankers managing
14
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 and
brokerages that have sold NTPC shares in the past one month.

It’s 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 by
clients 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 a
senior 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. The
retail portion alone in this issue is bigger than most of large public offers. To subscribe this
portion under the retail category, in which the maximum application amount is Rs 100,000, it
needs 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 evinced
interest to set up solar and wind projects in Orissa with aggregate generation capacity of 500
Mw.
Source- Business Standard (26 Mar 2010)
“NTPC Ltd. and Gujarat Power Corporation Ltd. (GPCL) have signed a Memorandum of
Understanding (MoU) for development of 500 MW renewable energy based projects, preferably
wind 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 the
coveted 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 from
Reliance Industries Ltd (RIL) at the government approved price of $4.2 per mmBtu, to 1.81
million standard cubic meters a day.
Source- Business Line (18 Mar 2010)

Effects on the value of shares:

15
From the news mentioned above, we can come to a conclusion that the different issues are not
able to affect the stock price. We also find that the price of the stock is stable at most of the
times. That means on the last day of the month i.e. – 31st March 2010, the stock price was highest
and priced at Rs208.20. If we go through the opening and closing value of the stock then we will
find that at most of the time it lies in 202 to 203. So in an overall prospect we can say that as it is
a 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 % change
3/31/20
10 203 208.2 202.7 207 5499000 207 1.908213
3/30/20
10 203.05 203.75 202.6 203.05 2092600 203.05 0.024624
3/29/20
10 202.55 203.9 201.45 203 2250300 203 0.246305
3/26/20
10 201.2 203.2 201.05 202.5 1883400 202.5 1.012346
3/25/20
10 203.55 203.55 198.05 200.45 7842000 200.45 -1.52158
3/23/20
10 203.5 204.05 201.55 203.5 2664200 203.5 0.737101
3/22/20
10 203 203 200.6 202 2027800 202 -0.24752
3/19/20
10 202.95 203.5 201.15 202.5 1963400 202.5 0.592593
3/18/20
10 203.5 203.5 201.1 201.3 1740600 201.3 -1.63934
3/17/20
10 203.5 205.25 202.8 204.6 2929600 204.6 0.782014
3/16/20
10 201.85 203.85 201.65 203 1710200 203 0.46798
3/15/20
10 199.4 202.25 199.4 202.05 2384000 202.05 0.989854
3/12/20
10 203.5 203.7 199.9 200.05 3083000 200.05 -1.29968
3/11/20
10 200.7 203.6 199.55 202.65 2673100 202.65 1.110289
3/10/20
10 203.8 204.15 199.55 200.4 6485600 200.4 -1.07285
3/9/201
0 205.4 205.85 202.4 202.55 3182700 202.55 -1.48112
3/8/201
0 205.05 207.9 203.7 205.55 3224300 205.55 -0.12162
3/5/201
0 207.9 208.2 205.4 205.8 3458800 205.8 -0.87464
3/4/201
0 208 208.35 206.2 207.6 4672500 207.6 0.529865
3/3/201
0 202.8 208.15 202.75 206.5 6687700 206.5 1.815981
16
 3/2/201
0 203.4 205 202.25 202.75 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 Hydro­Electric Power System comprises the Tata Hydro­Electric 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 in 
Group 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

17
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

Adj
Date Open High Low Close Volume Close % change
1199690
3/31/2010 16.45 16.58 16.42 16.53 0 16.53 -0.48397
1620410
3/30/2010 16.55 16.69 16.39 16.61 0 16.61 0.301023
1490280
3/29/2010 16.48 16.68 16.47 16.56 0 16.56 0.120773
2322490
3/26/2010 16.34 16.57 16.31 16.54 0 16.54 1.330109
2748740
3/25/2010 16.17 16.59 16.14 16.32 0 16.32 1.409314
3265450
3/24/2010 16.1 16.2 15.92 16.09 0 16.09 0.372902
3187570
3/23/2010 16.34 16.34 15.97 16.03 0 16.03 -1.93387
1874350
3/22/2010 16.37 16.54 16.32 16.34 0 16.34 -0.612
1777660
3/19/2010 16.62 16.81 16.34 16.44 0 16.44 -0.72993
1262620
3/18/2010 16.46 16.57 16.32 16.56 0 16.56 0.362319
1375460
3/17/2010 16.28 16.63 16.28 16.5 0 16.5 0.848485
1830990
3/16/2010 16.47 16.59 16.23 16.36 0 16.36 -0.61125
1896770
3/15/2010 16.35 16.64 16.28 16.46 0 16.46 0.850547
2310640
3/12/2010 16.51 16.59 16.26 16.32 0 16.32 -1.28676
2173290
3/11/2010 16.57 16.65 16.1 16.53 0 16.53 -1.5729
3308860
3/10/2010 16.51 16.94 16.51 16.79 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
3055400
3/8/2010 16.32 16.61 16.3 16.52 0 16.52 2.784504
2141500
3/5/2010 15.89 16.38 15.89 16.06 0 16.06 1.556663
2290600
3/4/2010 15.55 15.85 15.52 15.81 0 15.81 1.518027
2061380
3/3/2010 15.85 15.85 15.55 15.57 0 15.57 -1.02762
2010180
3/2/2010 15.87 15.96 15.67 15.73 0 15.73 -0.38144
1723800
3/1/2010 15.43 15.83 15.4 15.79 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 based
Origin Energy Limited, was one of the biggest news as on 3rd March 2010 which resulted in
sudden 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 week
to 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 invite
companies on March 15 to compete for the project at Surguja in eastern Chhattisgarh state, the
person said, asking not to be identified because the plan isn’t public. Tata Power Co. is
constructing a facility in western India with 4,000-megwatt projects.

3. Tata Power may sell 10% Bumi stake to Olympus

According to DNA of 30th March 2010, Tata Power, the country’s biggest power generator in the
private 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 Power’s plan to sell its stake in the mines
but 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 an
average rise of 19% to 35% in electricity tariff of credentials and commercial consumers in
Mumbai for the year 2010-11.Tata Power gained 1.45% at Bombay Stock Exchange closing at
1354.6 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 assets
to raise about 100 billion rupees in the next six to twelve months to boost power generation
capacity. The capital raised from assets sale will be used to help achieve a power generation
capacity 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.

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