Name the Issuer POWER GRID CORPORATION OF INDIA LIMITED 1 Type issue (IPO/ FPO) FPO 2 Issue size (Rs crore) 7,442.34* *includes Offer for Sale Rs.3,713.94 Crore 3 Grade issue alongwith name the rating agency Name Agency N.A.* Grade N.A.* * Grading applicable only for initial public ferings, as per ICDR and other applicable regulations. 4 Subscription level 14.84 times Source: Final Post Issue Monitoring Report. Note: The above figure is after technical rejections, cheque returns and spillover 5 QIB holding (as a % total outstanding capital) as disclosed to stock exchanges Particulars (i) allotment in the issue* (ii) at the end the 1st Quarter immediately after the listing the issue (Dec 31, 2010)** (iii) at the end 1st FY (Mar 31, 2011)** (iv) at the end 2nd FY (Mar 31, 2012)** (v) at the end 3rd FY (Mar 31, 2013)** * Basis Allotment Minutes. Computed as QIB Allotment in the issue / post issue capital. ** As reported under Clause 35 Listing Agreement to the Stock Exchanges. Percentage (%) 9.05% 19.24% 20.66% 20.93% 21.87% 6 Financials the issuer Parameters 1st FY (Mar 31, 2011) 2nd FY (Mar 31, 2012) 3rd FY (Mar 31, 2013) Income from operations 8,611.76 10,311.52 Net Prit for the period (after minority interest) 2,671.91 3,302.99 Paid-up equity share capital *4,629.73 4,629.73 N.A. Reserves excluding revaluation reserves 16,787.85 18,953.48 Source: As reported under Clause 41 Listing Agreement to the Stock Exchanges. Note: Based on Consolidated Financials the Company. Not disclosed as reporting for the relevant fiscal years has not been completed. * Paid-up equity capital for standalone entity. Consolidated number not available in Clause 41 filing the issuer. 7 Trading status in the scrip the issuer Particulars Status (i) at the end 1st FY (Mar 31, 2011) Frequently traded (ii) at the end 2nd FY (Mar 31, 2012) Frequently traded (iii) at the end 3rd FY (Mar 31, 2013) Frequently traded Source: Websites the respective stock exchanges, www.bseindia.com and www.nseindia.com Note: The shares have not been suspended or delisted. 8 Change, if any, in directors issuer from the disclosures in the Prospectus (i) at the end 1st FY (Mar 31, 2011) Name Director / s s (ii) at the end 2nd FY (Mar 31, 2012) Name Director Ashok Khanna Sushil Chandra Tripathi Jayabala Subramanian Sridharan Anil Kumar Agarwal / Superannuation 1
Dr Arvinder Singh Narag Dr Paddu Krishnappa Shetty Firdose Ardeshir Vandrevala Ram Tirath Agarwal Sarita Prasad M Ravi Kanth Rita Acharya Sudhir Kumar Chaturvedi Santosh Saraf Rita Sinha V M Kaul Superannuation Superannuation (iii) at the end 3rd FY (March 31, 2013) Name Director / R P Singh R P Sasmal R K Gupta Dr. K Ramalingam R Krishnamoorthy Ajay Kumar Mittal Mahesh Shah Source: Stock Exchange Filings as required under Clause 30 the Listing Agreement. 9 Status implementation project/ commencement commercial production (i) as disclosed in the Prospectus Identified Project Western Region Strengthening Scheme II Strengthening East-West Transmission Corridor Transmission System associated with Mundra Ultra Mega Power Project Western Region Strengthening Scheme IX Transmission System associated with Sasan Ultra Mega Power Project Southern Region Strengthening Scheme X Western Region Strengthening Scheme X Northern Region Strengthening Scheme XIII Transmission System for Barh Generation Project System Strengthening in Northern Region for Sasan and Mundra Ultra Mega Power Transmission System associated with Korba III Generation Project (500 MW) Transmission System for Parbati III Hydro Electric Project Transmission system for Mouda Generation Project (2x 500 MW) Estimated Date (as per Management December 2010 October 2012 April 2012 February 2012 November 2011 August 2012 June 2011 October 2012 (ii) Actual implementation No reference has been made in filings done with the stock exchanges The company has included additional projects for utilization & rescheduling the FPO proceeds, vide shareholder resolution by postal ballot in February 2012*. The details these additional projects are listed Identified below: Project Estimated Date (as Commissioning per Management Estimates) Common scheme for 765kV pooling stations and network for NR and common scheme for network for WR Supplementary transmission system associated with DVC and Maithon right bank project 765kV system for central part Northern Grid - Part I 765kV system for central part Northern Grid - Part II 765kV system for central part Northern Grid - Part III Northern region system strengthening scheme-xv Northern region system strengthening scheme-xviii Northern region system strengthening scheme-xix *The resolution also approves the deployment FPO proceeds in other projects the board deems fit, keeping in view the earliest utilization proceeds in on-going projects which can be commissioned earlier. The resolution was proposed after the review proceeds utilization, which was behind the scheduled utilization, due to legal, environmental and other factors, which had delayed some among the original 13 identified projects. For more details, please refer company filings. 2
(iii) Reasons for delay in implementation, if any As reported by Monitoring Agency ("IFCI Corporate Advisory Group") through its report (September 2012) : Identified Project Reasons for delay Western Region Strengthening Scheme II Strengthening East-West Transmission Corridor Transmission System associated with Mundra Ultra Mega Power Project Western Region Strengthening Scheme IX Southern Region Strengthening Scheme X System Strengthening in Northern Region for Sasan and Mundra Ultra Mega Power Projects Transmission System associated with Korba III Generation Project (500 MW) Transmission System for Parbati III Hydro Electric Project Additional projects Common scheme for 765kV pooling stations and network for NR and common scheme for network for WR Supplementary transmission system associated with DVC and Maithon right bank project 765kV system for central part Northern Grid - Part I 765kV system for central part Northern Grid - Part II 765kV system for central part Northern Grid - Part III Northern region system strengthening scheme-xv Northern region system strengthening scheme-xviii Northern region system strengthening scheme-xix Final forest clearance awaited for 1 out 9 1 transmission out 3 transmission lines. lines to be laid down could not be completed due to serious ROW encountered and collapse tower. Delay in award associated S/S works. The project is now anticipated to be completed by March 2014. Project has been commission on November 2011. Project was delayed due to ICT supply being delayed on account failure during testing. The project has been commissioned in March 12. The work was delayed in order to match its completion with the Sasan Generation Project, which is anticipated to commence operations in Due to ROW issues. Forest clearance is awaited for Parbati Pooling Point 4 out 10 lines are delayed due to dealy in forest clearance. 2 out 11 lines are slipping beyond schedule due to delay in forest clearance. Delay in readiness S/S on account land acquisition Delay in readiness at Agra & Bhiwani. S/S on account land acquisition Delay in readiness at Agra. S/S on account land acquisition at Bhiwani. 1 out 3 lines is getting delayed mainly due to delay in readiness associated S/S at kotputli. Delay in readiness S/S on account land acquisition at Dehradun & Bagpat. Delay in readiness S/S on account land acquisition at Bagpat. 10 Status utilization issue proceeds (as submitted to stock exchanges under Clauses 41, 43 and 43A the listing (Rs. Crore) agreement) As disclosed in fer document Object(s) the issue* Mar 31, 2011 Mar 31, 2012 March 31, 2013 Mar 31, 2014 Fund expenditure to meet the capital requirements for the implementation the Identified Projects 990.68 1,206.41 1,404.90 89.64 Issue expenses 36.77 - - - (Rs. Crore) Object(s) the issue* Actual Utilization Mar 31, 2011 Mar 31, 2012 Dec 31, 2012 Reasons for deviation, if any Fund expenditure to meet the capital requirements for the implementation the Identified Projects Issue expenses 1,600.00 3,691.63 2,971.17 Refer Note below 36.77 Note: Company announced following on Feb 08, 2011 to the stock exchanges: "The increase in the estimated utilization in the identified 13 projects during FY 2011 has been approved by the Board Directors in the Board meeting held on February 08, 2011. However, these projects will be funded in the Debt: Equity ratio 70:30 as per CERC norms, on completion. 11 Comments monitoring agency As reported by Monitoring Agency ("IFCI Corporate Advisory Group") through its report (September 2012)* : (i) Comments on use funds: The envisaged utilization funds and actual utilization funds are as follows (in Rs. Cr): Particulars As stated in fer Actual Gross proceeds the issue document 7,442.34 7,442.34 Issue expenses 36.77 8.28 3
Offer for sale portion (Government) 3,713.94 3,721.17 Net proceeds for investment in projects 3,691.63 3,712.89 Rs.15.92 Cr was incurred in FY2011 as fer expenses as against the envisaged Rs.36.77 Cr. Out this, Rs.7.64 Cr was reimbursed by the government and the balance was borne by Power Grid by internal accruals. This balance Rs.8.28 Cr is proposed to be reimbursed from the proceeds the fer by the company. Power Grid incurred expenditure Rs.1,599.07 Cr on the identified projects over the half year ended September 30, 2011. The estimated expenditure for the entire fiscal year is Rs.3,835.12 Cr. This expenditure was financed by Rs.150 Cr from the net proceeds the issue and Rs.22.18 Cr from internal accruals, the remaining Rs.1,426.89 Cr from debt. As on September 30, 2012, PGCIL incurred a cumulative expenditure Rs. 28599.91 Cr. till date, on the identified projects, including additional projects, out which Rs. 3212.89 was financed from the net proceeds the issue. * report awaited (ii) Comments on deviation, if any, in the use proceeds the issue from the objects stated in the fer document: (iii) Any other reservations expressed by the monitoring agency about the end use funds (To be submitted till the time the issue proceeds have been fully utilised): 12 Price- related data Issue price (Rs) per share: Rs. 90.00* *Rs 85.50 (5% discount) for retail bidders and eligible employees. Price parameters At close listing day (November 25, 2010) At close 30th calendar day from listing day (December At close 90th calendar day from listing day (February As at the end March 31, 2011 Closing price High (during the FY) Low (during the FY) Market Price 96.55 24, 2010) 97.75 22, 2011) 98.45 101.90 104.40 91.80 Nifty 5,799.75 6,011.60 5,469.20 5,833.75 6,181.05 5,177.70 BSE Power Index (2) 2,890.83 2,933.24 2,596.00 2,712.11 3,024.91 2,482.87 Price parameters As at the end 2nd FY after the listing the issue (March 31, 2012) As at the end 3rd FY after the listing the issue (March 31, 2013) Closing price High (during the FY) Low (during the FY) Closing price High (during the FY) Low (during the FY) Market Price 108.15 115.20 93.50 105.80 124.70 95.20 Nifty 5,295.55 5,944.45 4,531.15 5,682.55 6,111.80 4,770.35 BSE Power Index (2) 2,090.97 2,819.96 1,725.21 1,646.50 2,169.52 1,622.06 Source: NSE Note: Where the 30th day / 90th day / March 31 a particular year falls on a holiday, the immediately following trading day has been considered. Being the index NSE Limited, the designated stock stock exchange. (2) BSE Power Index is a BSE index which track the performance companies engaged into the business generation, transmission, distribution electricity, companies providing power infrastructure, and manufacturers equipments required for power generation. 13 Basis for Issue Price and Comparison with Peer Group & Industry Average Accounting ratio Name company As disclosed in the Prospectus* EPS (Rs.) P/E multiple RoNW (%) NAV per share based on balance sheet (Rs.) At the end March 31, At the end March 31, Issuer # 4.85 2011 6.19 2012 7.03 Industry Average N.A. N.A. N.A. Issuer # 18.56 16.46 15.36 Industry Composite N.A. N.A. N.A. Issuer # 12.83% 12.63% 13.86% Industry Average N.A. N.A. N.A. Issuer # 37.81 46.12 50.73 Industry Average N.A. N.A. N.A. At the end March 31, *Disclosures relating to the Company made on standalone basis. The company has no subsidiaries. # Sourced from the Annual Report the Company for the relevant fiscal year based on audited standalone financials except for share price information which has been sourced from NSE's website. Key ratios for the Company have been calculated (i) EPS - Diluted as follows: EPS as reported by the Company in its Annual Report. (ii) P/E - Closing Price as March 31 each year / EPS. (iii) RoNW - Net Prit After Tax (after Extraordinary items) / Networth (Share Capital + Reserves and Surplus). (iv) NAV per share - Networth (Share Capital + Reserves and Surplus) / Shares Outstanding as fiscal year end. ~ As mentioned in the prospectus, there is no comparable listed peer company for Power Grid Corporation India. Not disclosed as reporting for the relevant fiscal years has not been completed. 4
14 Any other material information Date May, 2011 August, 2011 August, 2011 September, 2011 September, 2011 November, 2011 December, 2011 December, 2011 January, 2012 February, 2012 March, 2012 March, 2012 April, 2012 July, 2012 August, 2012 September, 2012 September, 2012 October, 2012 December, 2012 December, 2012 Information Board Directors at its meeting held on May 30, 2011, approved the investment for "Establishment Pooling Stations at Champa and Raigarh (near Tamnar) for IPP Generation Projects in Chhattisgarh" at an estimated cost Rs. 1961.87 Crore with commissioning schedule 36 months from the date investment Board Directors at its meeting held on August 2, 2011, approved the investment for Integration Pooling Stations in Chhattisgarh with Central part WR for IPP Generation Projects in Chhattisgarh at an estimated cost Rs. 1391.97 Crore, with commissioning schedule 28 months from the date investment Board Directors at its meeting held on August 26, 2011, approved the investment for 'Transmission System for IPP generation projects in Madhya Pradesh & Chhattisgarh' at an estimated cost Rs. 1366.34 Mr R.N. Nayak Crore, who with was commissioning earlier director schedule (Operations) 27 months was appointed from the date as the Chairman investment and Managing Board Director. Directors at its meeting held on September 16, 2011, approved the investment for 'Common System associated with Coastal Energen Private Limited and Ind-Barath Power (Madras) Limited LTOA Generation Projects in Tuticorin area (Part-B)' at an estimated cost Rs. 1940.13 Crore, with commissioning schedule 36 months from the date Investment Board Directors at its meeting held on November 17, 2011, approved the investment for Transmission System Strengthening in Western Part WR for IPPs Generation Projects in Chhattisgarh' at an estimated cost Rs. 2127.51 Crore, with commissioning schedule 32 months progressively from the date In-principle investment approval by the Board for equity participation in the proposed Special Purpose Vehicle (SPV) being created by DoT for setting up National Optical Fibre Network (NOFN) subject to Power Grid equity being limited presently upto 10% the proposed paid up capital Rs. 100 Crore. Board Directors at its meeting held on Decmeber 27, 2011, approved the investment for (a) System Strengthening in North/West part WR for IPP Projects in Chhattisgarh' at an estimated cost Rs. 1746.65 Crore, with commissioning schedule 32 months from the date investment approval (b) 'Transmission System for Phase-I Generation Projects in Jharkhand and West Bengal - Part A2' at an estimated cost Rs. 2422.66 Crore, with commissioning schedule 32 months from the date investment Board Directors at its meeting held on January 23, 2012, approved the investment for 'System Strengthening in Raipur-Wardha Corridor for IPP Projects in Chhattisgarh' at an estimated cost Rs. Board 1422.85 Crore Directors with at a its commissioning meeting held schedule on Feb 08, 2012, 36 months approved from the date investment investment for 'System Strenghthening in Wardha - Aurangabad Corridor for IPP Projects in Chattisgarh' at an estimated cost Rs. 1310.85 Crore with a commissioning schedule 36 months, 'Transmission System for Phase -I Generation Projects in Jharkand and West Bengal-Part B' at an estimated cost Rs.3201.44 with a commissioning schedule 32 months and 'Transmission System associated with Krishnapatnam UMPP- Board Part B' at Directors an estimated at its cost meeting Rs.1927.16 held on March with a 26, commissioning 2012, approved schedule the investment 32 months for 'WR from - NR the HVDC date Interconnector for IPP Projects in Chhattisgarh' at an estimated cost Rs. 9569.76 Crore with a commissioning Power Grid selected schedule for the 39 debut months participation from the in date tariff based investment competitive bidding for establishing transmission system associated with IPPs Nagapattinam / Cuddalore Area: Package - A. In accordance with the guidelines for competitive bidding, Nagapattinam-Madhugiri Transmission Company Ltd, the Special Purpose Vehicle incorporated to establish the transmission system on build, own operate and Power maintain Grid selected (BOOM) for basis, establishing has been transmission taken over on system March associated 29, 2012 by with the IPPs Company Vemagiri Area: Package - A. In accordance with the guidelines for competitive bidding, Vemagiri Transmission System Limited, the Special Purpose Vehicle incorporated to establish the transmission system on build, own operate and maintain (BOOM) basis, was acquired on April 18, 2012 by the Company Power Grid entered into Shareholder Agreements to setup 400kV DC transmission line between Board Directors the Company during their meeting held on August 06, 2012 have approved following investment approvals : 'Expansion and Replacement Existing SCADA/EMS System at SLDCs Northern Region (NR ULDC Phase-II)' at an estimated cost Rs. 70.90 Crore with commissioning schedule 27 months from the date investment (2) 'Installation Reactors Board in Western Directors Region' the at an Company estimated its cost meeting Rs. held 83.17 on August Crore 31, with 2012 commissioning have approved schedule the investment 24 months approval for System Strengthening - XIX in Southern Regional Grid at an estimated cost Rs. 1935.35 Crore with commissioning schedule 27 months from the date investment Board Directors the Company at its meeting held on September 26, 2012 have approved the following investment approvals: 1. Northern Region System Strengthening Scheme - XXVI at an Board Directors the Company at its meeting held on October 14, 2012, has approved the investment approval for Strengthening Scheme in Northern Region at an estimated cost Rs. 100.55 Crore with Board Directors the Company at its meeting held on December 06, 2012 have accorded approval for (a) formation a Joint Venture Company With Odisha Power Transmission Corporation Ltd for taking up Intra State Transmission projects in the state Odisha; and (b) formation a Joint Venture Company with Bihar State Power (Holding) Co. Ltd. for taking up Intra State Transmission projects Board in Directors the State the Bihar. Company The scope at its meeting Intra State held works on December is yet to 06, be 2012 finalized. have The accorded JVCs to approval be for: 1. Investment approval for 'Northern Region System Strengthening Scheme - XXVII' at an estimated cost Rs. 96.27 Crore, with commissioning schedule 20 months from the date investment approval; 2. Investment approval for 'Augmentation Transformers in Northern Region - Part-A' at an 5
January, 2013 Board Directors the Company at its meeting held on January 03, 2013, have accorded Investment approval for 'Common Transmission Scheme associated with ISGS Projects in Nagapattinam / Cuddalore area Tamil Nadu - Part-A1 (a)' at an estimated cost Rs. 182.80 Crore, with January, 2013 POWERGRID commissioning has schedule done a landmark 21 months transaction from the date for US$ investment 500 Million in debut issue in foreign currency market with a coupon rate 3.875% p.a. for ten years note. This note shall be listed in Singapore Stock March, 2013 Exchange. Board Directors the Company at its meeting held on March 08, 2013, have approved the investment approval for 'Transmission System associated with Meja TPS' at an estimated cost Rs. Note: The above information has been sourced from announcements made 55.73 to stock Crore exchanges with commissioning until March 31, 2013. schedule 28 months from the date investment For further information please refer to Corporate Announcements as reported on stock exchange website. This document is uploaded by SBI Capital Markets Limited ( SBICAP ) on its website pursuant to the SEBI Circular No. CIR/MIRSD/1/2012 dated January 10, 2012, without having regard to specific objectives, suitability, financial situations and needs any particular person and does not constitute any recommendation, and should not be construed as an fer to sell or the solicitation an fer to buy, purchase or subscribe to any securities mentioned therein, and neither this document nor anything contained herein shall form the basis or be relied upon in connection with any contract or commitment whatsoever. This document does not solicit any action based on the material contained herein. 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