Power Grid
BSE SENSEX
49,719
S&P CNX
14,634
3 May 2021
Update | Sector: Utilities
CMP: INR221
TP: INR255 (+15%)
Monetization plans set to take off
Providing a means for asset monetization
Buy
Stock Info
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
Free float (%)
PWGR IN
5,232
1151.7 / 15.6
239 / 153
1/3/-13
2287
48.7
Financials & Valuations (INR b)
Y/E MARCH
2020 2021E 2022E
Sales
394.3 411.1 441.9
EBITDA
346.2 365.0 393.1
Adj. PAT
110.6 124.7 135.1
EBITDA Margin (%) 87.8 88.8 89.0
Cons. Adj. EPS (INR) 21.1 23.8 25.8
EPS Gr. (%)
10.2 12.7 8.4
BV/Sh. (INR)
123.7 132.4 144.0
Ratios
Net D:E
2.2 2.1 1.8
RoE (%)
17.9 18.6 18.7
RoCE (%)
7.9 8.3 8.9
Payout (%)
54.1 59.8 60.6
Valuations
P/E (x)
10.4 9.3 8.6
P/BV (x)
1.8 1.7 1.5
EV/EBITDA(x)
7.5 7.1 6.4
Div. Yield (%)
4.5 5.9 6.4
FCF Yield (%)
17.3 14.8 21.7
Shareholding pattern (%)
As On
Mar-21 Dec-20 Mar-20
Promoter
51.3
51.3
51.3
DII
13.8
15.5
16.7
FII
28.4
26.7
27.0
Others
6.5
6.4
5.0
FII Includes depository receipts
Stock Performance (1-year)
Power Grid Corpn
280
240
200
160
120
Sensex - Rebased
The launch of Power Grid (PWGR)’s InvIT marks the start of monetization
plans for its tariff-based competitive (TBCB) projects. The initial InvIT
would house five transmission projects (gross block: INR72b). For PWGR,
the same accounts for 3% of its total gross block and hence the value
accretion is not large. We had valued these five assets at INR36b. Against
this, we see a potential realized value of INR53b – INR27b from offer for
sale, INR13.7b of a 15% stake in InvIT, and ~INR12b est. value for a 26%
stake in SPVs – implying an INR3/sh accretion.
Nevertheless, the InvIT provides a strong means for recycling as a)
incremental orders within the sector are largely on a TBCB basis and b)
PWGR has a healthy portfolio of 11 under-construction TBCB assets (cost:
INR108b). Additionally, the co. has three other projects operationalized
and has recently won five packages under the RE transmission scheme in
Rajasthan – thereby leading to a potential monetization pipeline for
another INR235b worth of projects.
Regulated tariff mechanism (RTM) assets, though, continue to be the
mainstay for the co. RTM would account for 92% of the co.’s gross block in
FY23 (post-InvIT: 94%). These assets are governed by CERC regulations,
including RoEs, and are thus subject to changes in the same. Tariffs in the
case of TBCB are more predictable and bid out in advance. PWGR noted
that it could look at the option of transferring the RTM assets, but this
looks unlikely in the near term, with the focus on monetizing its TBCB
pipeline.
InvIT – expect initial IRRs at 9%, yield at 11–12%
The five assets transferred to the InvIT provide a steady stream of cash
flow and have been operational for the past 2–4 years – thereby implying
another 31–33 years of life under the transmission service agreement
(TSA). PWGR would retain a 26% stake in the individual SPVs until the
lock-in period (five years from CoD).
The offer sets the valuation of the InvIT at INR91b, with an issue size of
INR77.4b; PWGR holds a 15% stake in the InvIT. Of the total proceeds,
INR27b is an offer for sale from PWGR, while INR50b would be used to
repay the debt of the SPVs. The InvIT is projected to generate cash flow
from operations of INR11–12b p.a. over FY22–24. We believe the InvIT
could provide yield of 11–12% in the initial years, with overall IRR of ~9%.
However, there remains a robust growth opportunity, with the ability to
leverage at the InvIT level and improve IRR – given an INR235b pipeline at
the sponsor (PWGR).
Aniket Mittal – Research Analyst
(Aniket.Mittal@MotilalOswal.com)
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
 Motilal Oswal Financial Services
Power Grid
See a strong case for higher dividends; Maintain Buy
PWGR had noted that monetization proceeds from the InvIT would be used for
future growth purposes. While the awarding of transmission schemes under
renewable integration provides this opportunity, our checks suggest continued
challenges have resulted in the awarding being deferred. Accordingly, with a
declining order book and capex schedule, we see a strong case for higher
dividend in the near term.
With INR27b upfront cash from the OFS sale, we see this as potentially
distributable to shareholders – implying an additional dividend of INR5/sh. This,
along with a steady 60–65% payout ratios, would translate to DPS of INR34/sh
over the next two years – implying dividend yield of 8%. Furthermore, a) the
share of dividend from SPVs of the InvIT, b) a 26% stake sale in the five SPVs,
and c) the further transfer of assets to the InvIT provide additional distribution
potential. Given a ~7% dividend yield (current) – backed by steady earnings
growth (7% CAGR over FY21–23) and RoEs of 18% – PWGR remains attractively
valued at 1.4x FY23E P/BV. Maintain Buy, with DCF-based TP of INR255/sh.
Exhibit 1: Structure of InvIT: PWGR holds 15% share in trust and 26% stake in SPVs
Source: Power Grid InvIT RHP, MOFSL
3 May 2021
2
 Motilal Oswal Financial Services
Power Grid
INR50b of the proceeds
from the issue would be
used to pay off the SPV
debt
Exhibit 2: Key parameters for five projects (INR m)
Project
Vizag
Kala Amb
Parli
Warora
Jabalpur
Total
Gross block
13,098
3,214
18,463
22,321
15,295
72,390
Revenue
(FY20)
3,129
732
3,273
3,603
2,506
13,243
EBITDA
PAT
Debt
(FY20)
(FY20)
3,059
1,518
7,840
660
234
1,860
3,166
792
13,005
3,494
761
15,400
2,483
484
11,830
12,861
3,788
49,935
Source: Power Grid InvIT RHP, MOFSL
The InvIT plans to acquire
the remaining 26% stake in
the SPVs from PWGR after
the lock-in period expiry
Exhibit 3: Lock-in and TSA end-date of five projects
Project
Vizag
Kala Amb
Parli
Warora
Jabalpur
Commission
date
1-Feb-17
12-Jul-17
4-Jun-18
10-Jul-18
1-Jan-19
26% equity lock-in
expiry
date
1-Feb-22
12-Jul-22
4-Jun-23
10-Jul-23
1-Jan-24
TSA end
date
31-Jan-52
11-Jul-52
3-Jun-53
9-Jul-53
24-Jun-53
Source: Power Grid InvIT RHP, MOFSL
Exhibit 4: Forecast cash flow from operations (CFO) for SPVs and InvIT (as per the offer
document)
Projects
Vizag
Kala Amb
Parli
Warora
Jabalpur
CFO at SPVs
CFO at InvIT
FY22F
2,607
650
3,085
3,435
2,424
12,202
12,086
FY23F
FY24F
2,260
2,011
615
565
3,081
3,078
3,432
3,429
2,421
2,421
11,808
11,504
11,685
11,374
Source: Power Grid InvIT RHP, MOFSL
Exhibit 5: PWGR has another 16 TBCB-based SPVs with est. cost of INR187b; SPVs for additional ~INR50b of recent award
wins yet to be taken over
Proj. cost
Est.
INR m
13,465
729
36,916
29,728
10,964
8,848
4,459
9,127
5,024
6,411
10,173
7,982
7,123
8,953
20,980
6,180
187,062
Debt
INR m
10,889
403
27,807
21,111
6,480
5,363
2,113
2,125
480
1,627
830
1,468
151
310
NA
NA
81,157
FY20
Net worth
PAT
INR m
INR m
833
-295
244
96
7,161
87
2,893
0
1,200
0
1,250
0
0
0
0
-3
-6
1
-3
-3
0
0
0
0
-8
-7
0
0
NA
NA
NA
NA
13,564
-124
Source: MOFSL, CEA, Company
NM Transmission
Unchahar Transmission
Southern Interconnector
Medinipur-Jeerat
Mithilanchal Trans.
Varanasi Trans.
Jawaharpur Firozabad
Khetri Transco
Bhind Guna Trans.
Ajmer Phagi
Bhuj Transmission
Fatehgarh-II
Rampur Sambhal
Meerut-Simbhavali
Bikaner-II Bhiwadi
Ramgarh New
Total
Note: Rows highlighted are commissioned projects.
3 May 2021
3
 Motilal Oswal Financial Services
Power Grid
Exhibit 6: Combined SPV Income Statement
INR m
Revenue From Operations
Other Income
Total Income
Finance costs
Depreciation and amortization
Other expenses
Total expenses
Profit Before Tax
Tax expense:
Profit for the period
FY18
3,436
20
3,456
1,158
932
81
2,171
1,285
144
1,141
FY19
FY20
9M-FY21
9,772
13,243
9,923
70
98
168
9,841
13,341
10,091
3,281
4,291
2,910
2,750
3,794
1,392
330
382
312
6,361
8,467
4,614
3,480
4,874
5,477
1,000
1,086
2,105
2,481
3,788
3,371
Source: Power Grid InvIT RHP, MOFSL
Exhibit 7: Combined SPV Balance Sheet Statement
INR m
Assets
Non-current assets
Property, Plant and Equipment
Capital work-in-progress
Other Intangible assets
Intangible assets under development
Deferred tax Assets(Net)
Other non-current assets
Current assets
Inventories
Trade receivables
Cash and cash equivalents
Other current financial assets
Current Tax Assets (Net)
Other current assets
Total Assets
Equity and Liabilities
Equity
Equity Share capital
Other Equity
Liabilities
Non-current liabilities
Borrowings
Deferred tax liabilities(Net)
Current liabilities
Trade payables
Other current financial liabilities
Other current liabilities
Provisions
Current Tax Liabilities (Net)
Total Equity and Liabilities
FY18
FY19
FY20
9M-FY21
17,787
45,293
4
187
193
412
63,875
109
507
170
339
49
0
1,174
65,049
66,153
87
885
-
-
55
67,180
210
1,189
27
1,306
57
34
2,823
70,003
63,219
-
1,155
-
-
41
64,415
310
1,737
399
1,260
57
34
3,797
68,212
61,994
22
1,117
-
-
620
63,753
310
1,881
541
1,405
-
296
4,432
68,185
4,423
712
5,135
9,987
2,196
12,183
12,007
3,330
15,337
12,130
2,751
14,881
52,367
-
52,367
1
7,388
157
0
1
7,547
65,049
53,369
53
53,422
44,293
287
44,580
47,507
2,677
50,185
4
9
87
4,305
8,268
2,998
53
15
31
6
1
0
31
1
2
4,398
8,295
3,119
70,003
68,212
68,185
Source: Power Grid InvIT RHP, MOFSL
3 May 2021
4
 Motilal Oswal Financial Services
Power Grid
Financials and valuations
Income statement
Y/E March
Net Sales
Change (%)
Expenditure
EBITDA
% of Net Sales
Depreciation
Interest
Other Income
PBT before EO
EO income (expense)
PBT after EO
Tax
Rate (%)
Reported PAT
Share of JVs and asso.
Adjusted PAT
Change (%)
2016
206,521
17.0
23,940
182,581
88.4
61,818
50,862
4,663
74,563
0
74,563
16,129
21.6
58,434
1,152
59,586
17.1
2016
52,316
387,383
439,699
1,085,449
82,169
1,607,318
1,214,908
63,965
1,150,942
354,021
9,185
278,769
109,163
27,395
22,434
82,260
37,518
185,600
93,170
1,607,318
2017
257,039
24.5
30,467
226,572
88.1
77,223
62,036
5,838
93,153
0
93,153
20,063
21.5
73,090
1,418
74,507
25.0
2017
52,316
446,339
498,655
1,189,879
74,184
1,762,718
1,519,616
142,837
1,376,779
296,750
11,650
271,272
94,963
31,319
33,536
71,952
39,501
193,732
77,539
1,762,718
2018
299,415
16.5
36,296
263,119
87.9
92,310
73,241
4,891
102,459
0
102,459
21,955
21.4
80,504
1,479
86,513
16.1
2018
52,316
491,944
544,260
1,315,030
74,509
1,933,798
1,798,900
236,914
1,561,986
289,496
12,240
279,548
97,683
36,400
21,890
85,246
38,329
209,468
70,080
1,933,801
2019
325,323
8.7
48,386
276,937
85.1
105,410
87,366
6,022
90,184
0
90,184
-8,864
-9.8
99,047
1,288
100,335
16.0
2019
52,316
538,568
590,884
1,463,764
194,755
2,249,403
2,072,146
344,750
1,727,396
262,311
12,964
470,904
126,472
47,281
43,367
154,238
99,547
224,173
246,731
2,249,402
2020
394,269
21.2
48,033
346,236
87.8
116,070
95,090
9,274
144,350
0
144,350
35,308
24.5
109,043
1,551
110,594
10.2
2020
52,316
594,638
646,954
1,482,696
221,448
2,351,098
2,275,432
464,311
1,811,121
284,492
14,311
456,609
81,617
50,407
54,390
155,906
114,289
215,434
241,174
2,351,098
2021E
411,061
4.3
46,076
364,985
88.8
125,875
95,276
10,148
153,982
-10,750
143,232
30,738
21.5
112,495
1,420
124,664
12.7
2021E
52,316
640,492
692,808
1,446,725
221,448
2,360,981
2,509,684
590,186
1,919,498
155,488
14,311
447,900
81,964
55,678
26,267
169,592
114,400
176,217
271,684
2,360,981
2022E
441,851
7.5
48,769
393,081
89.0
134,957
97,024
6,444
167,545
0
167,545
33,881
20.2
133,664
1,486
135,149
8.4
2022E
52,316
701,166
753,482
1,390,288
221,448
2,365,218
2,689,471
725,142
1,964,329
69,605
14,311
481,210
82,289
52,204
49,443
182,903
114,372
164,236
316,974
2,365,218
(INR m)
2023E
461,355
4.4
52,507
408,849
88.6
142,343
97,121
6,753
176,138
0
176,138
35,692
20.3
140,446
1,453
141,898
5.0
Balance sheet
Y/E March
Share Capital
Reserves
Net Worth
Loans
Deferred Rev. & tax
Capital Employed
Gross Fixed Assets
Less: Depreciation
Net Fixed Assets
Capital WIP
Investments
Other Assets
Inventory
Debtors
Cash & Bank Balance
Other Current Assets
Loans & Advances
Other Liabilities
Net Current Assets
Application of Funds
2023E
52,316
757,149
809,465
1,321,952
221,448
2,352,865
2,817,493
867,486
1,950,008
31,190
14,311
527,401
83,261
52,943
79,186
196,359
115,653
170,045
357,356
2,352,865
(INR m)
3 May 2021
5
 Motilal Oswal Financial Services
Power Grid
Financials and valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
Book Value
DPS
Div.Payout (incl. Tax.)
Valuation (x)
P/E
Cash P/E
EV/EBITDA
Price/Book Value
Dividend Yield (%)
Profitability Ratios (%)
RoE
RoCE
RoIC
Turnover Ratios
Debtors (Days)
Inventory (Days)
Current Liabilities (Days)
2016
11.4
23.2
84.0
2.1
0.0
19.4
9.5
12.2
2.6
1.0
14.5
6.5
8.6
48
94
160
2017
14.2
29.0
95.3
2.5
21.0
15.5
7.6
10.2
2.3
1.1
15.9
7.2
8.9
44
70
142
2018
16.5
34.2
104.0
5.8
44.2
13.4
6.5
9.3
2.1
2.6
16.6
7.5
8.9
44
64
136
2019
19.2
39.3
112.9
8.6
54.5
11.5
5.6
9.3
2.0
3.9
17.7
9.3
10.6
53
84
149
2020
21.1
43.3
123.7
10.0
54.1
10.4
5.1
7.5
1.8
4.5
17.9
7.9
8.9
47
59
155
2021E
23.8
47.9
132.4
13.0
59.8
9.3
4.6
7.1
1.7
5.9
18.6
8.3
9.0
49
58
125
2022E
25.8
51.6
144.0
14.2
60.6
8.6
4.3
6.4
1.5
6.4
18.7
8.9
9.4
43
56
112
2023E
27.1
54.3
154.7
16.4
66.7
8.1
4.1
5.9
1.4
7.4
18.2
9.2
9.5
42
55
113
Cash flow statement
Y/E March
PBT before EO Items
Depreciation
Interest
Others
(Inc)/Dec in WC
Direct Taxes Paid
CF from Operations
(Inc)/Dec in FA
(Pur)/Sale of Investments
CF from Investments
Equity raised
Grants etc
(Inc)/Dec in Debt
Interest Paid
Dividend Paid
CF from Fin. Activity
Inc/Dec of Cash
Add: Beginning Balance
Closing Balance
2016
75,597
61,818
50,862
-4,730
-19,310
-14,156
150,082
-216,795
1,030
-215,765
0
0
117,171
-47,584
-13,379
56,208
-9,475
31,909
22,434
2017
94,369
77,223
62,036
-3,264
4,495
-18,714
216,144
-239,244
495
-238,749
0
0
112,506
-57,000
-15,921
39,586
16,980
16,556
33,536
2018
103,938
92,310
73,241
-3,616
-16,181
-22,591
227,101
-261,799
4,784
-257,015
0
0
119,924
-70,480
-36,598
12,847
-17,067
38,957
21,890
2019
84,531
105,410
87,366
33,927
-54,619
-22,808
233,807
-224,507
36,137
-188,370
0
0
133,169
-102,924
-54,554
-24,308
21,129
22,237
43,367
2020
149,465
116,070
95,090
-28,805
4,271
-25,687
310,405
-113,671
3,249
-110,423
0
0
-17,317
-117,301
-53,440
-188,058
11,924
42,466
54,390
2021E
153,982
125,875
95,276
-20,898
-58,632
-30,738
264,865
-105,248
11,568
-93,681
0
0
-35,972
-95,276
-68,060
-199,308
-28,123
54,390
26,267
2022E
167,545
134,957
97,024
-6,444
-22,114
-33,881
337,086
-93,904
7,930
-85,974
0
0
-56,437
-97,024
-74,475
-227,936
23,176
26,267
49,443
2023E
176,138
142,343
97,121
-6,753
-10,639
-35,692
362,518
-89,608
8,206
-81,402
0
0
-68,336
-97,121
-85,916
-251,372
29,743
49,443
79,186
(INR m)
3 May 2021
6
 Motilal Oswal Financial Services
Power Grid
Explanation of Investment Rating
Investment Rating
Expected return (over 12-month)
BUY
>=15%
SELL
< - 10%
NEUTRAL
< - 10 % to 15%
UNDER REVIEW
Rating may undergo a change
NOT RATED
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within
following 30 days take appropriate measures to make the recommendation consistent with the investment rating legend.
Disclosures
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the
Regulations, is engaged in the business of providing Stock broking services, Investment Advisory Services, Depository participant services & distribution of various financial
products. MOFSL is a subsidiary company of Passionate Investment Management Pvt. Ltd.. (PIMPL). MOFSL is a listed public company, the details in respect of which are
available on www.motilaloswal.com. MOFSL (erstwhile Motilal Oswal Securities Limited - MOSL) is registered with the Securities & Exchange Board of India (SEBI) and is a
registered Trading Member with National Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India Limited (MCX) and
National Commodity & Derivatives Exchange Limited (NCDEX) for its stock broking activities & is Depository participant with Central Depository Services Limited (CDSL) National
Securities Depository Limited (NSDL),NERL, COMRIS and CCRL and is member of Association of Mutual Funds of India (AMFI) for distribution of financial products and Insurance
Regulatory & Development Authority of India (IRDA) as Corporate Agent for insurance products.
Details of associate entities of Motilal Oswal Financial Services Limited are
available on the website at
http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf
MOFSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and
buy or sell the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other
compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have
any other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report
MOFSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, the recipients of this report
should be aware that MOFSL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific
merchant banking, investment banking or brokerage service transactions. Details of pending Enquiry Proceedings of Motilal Oswal Financial Services Limited are available on the
website at
https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
A graph of daily closing prices of securities is available at
www.nseindia.com, www.bseindia.com.
Research Analyst views on Subject Company may vary based on Fundamental
research and Technical Research. Proprietary trading desk of MOFSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated
from MOFSL research activity and therefore it can have an independent view with regards to Subject Company for which Research Team have expressed their views.
Regional Disclosures (outside India)
This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability
or use would be contrary to law, regulation or which would subject MOFSL & its group companies to registration or licensing requirements within such jurisdictions.
For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong
Kong Securities and Futures Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst
Regulations) 2014 Motilal Oswal Securities (SEBI Reg No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of
research report in Hong Kong. This report is intended for distribution only to “Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity
to which this document relates is only available to professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these
securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not
located in Hong Kong & are not conducting Research Analysis in Hong Kong.
For U.S.
Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under
applicable state laws in the United States. In addition MOFSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers
Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any
brokerage and investment services provided by MOFSL , including the products and services described herein are not available to or intended for U.S. persons. This report is
intended for distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as
"major institutional investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any investment or investment activity to which
this document relates is only available to major institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption from registration
provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and interpretations thereof by the U.S. Securities and Exchange
Commission ("SEC") in order to conduct business with Institutional Investors based in the U.S., MOFSL has entered into a chaperoning agreement with a U.S. registered broker-
dealer, Motilal Oswal Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this
chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S.
registered broker-dealer, MOSIPL, and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public
appearances and trading securities held by a research analyst account.
For Singapore
In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a capital markets
services license and an exempt financial adviser in Singapore.As per the approved agreement under Paragraph 9 of Third Schedule of Securities and Futures Act (CAP 289) and
Paragraph 11 of First Schedule of Financial Advisors Act (CAP 110) provided to MOCMSPL by Monetary Authority of Singapore. Persons in Singapore should contact MOCMSPL
in respect of any matter arising from, or in connection with this report/publication/communication. This report is distributed solely to persons who qualify as “Institutional Investors”,
of which some of whom may consist of "accredited" institutional investors as defined in section 4A(1) of the Securities and Futures Act, Chapter 289 of Singapore (“the
SFA”). Accordingly, if a Singapore person is not or ceases to be such an institutional investor, such Singapore Person must immediately discontinue any use of this Report and
inform MOCMSPL.
Specific Disclosures
1 MOFSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.
2 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOFSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report
5 Research Analyst has not served as director/officer/employee in the subject company
6 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOFSL has not received any compensation or other benefits from third party in connection with the research report
10 MOFSL has not engaged in market making activity for the subject company
3 May 2021
7
 Motilal Oswal Financial Services
Power Grid
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The associates of MOFSL may have:
- financial interest in the subject company
- actual/beneficial ownership of 1% or more securities in the subject company
- received compensation/other benefits from the subject company in the past 12 months
- other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
- acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
- be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the
company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies)
- received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.
The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report
Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not
consider demat accounts which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from
clients which are not considered in above disclosures.
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the
research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
Terms & Conditions:
This report has been prepared by MOFSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and
may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent
of MOFSL. The report is based on the facts, figures and information that are considered true, correct, reliable and accurate. The intent of this report is not recommendatory in
nature. The information is obtained from publicly available media or other sources believed to be reliable. Such information has not been independently verified and no guaranty,
representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice. The
report is prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial
instruments for the clients. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOFSL will not treat recipients as
customers by virtue of their receiving this report.
Disclaimer:
The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or
distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent. This report and information herein is solely for
informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Nothing
in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances.
The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment
objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. Each recipient of this
document should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this
document (including the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views
expressed may not be suitable for all investors. Certain transactions -including those involving futures, options, another derivative products as well as non-investment grade
securities - involve substantial risk and are not suitable for all investors. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of
the information and opinions contained in this document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and
should not be treated as endorsement of the views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to make
modifications and alternations to this statement as may be required from time to time without any prior approval. MOFSL, its associates, their directors and the employees may from
time to time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform or seek to
perform investment banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as a
separate, distinct and independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of
information that is already available in publicly accessible media or developed through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or
may not subscribe to all the views expressed therein. This document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on,
directly or indirectly, to any other person or published, copied, in whole or in part, for any purpose. This report is not directed or intended for distribution to, or use by, any person or
entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law,
regulation or which would subject MOFSL to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in
all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction.
Neither the Firm, not its directors, employees, agents or representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost
revenue or lost profits that may arise from or in connection with the use of the information.
The person accessing this information specifically agrees to exempt MOFSL or any of its
affiliates or employees from, any and all responsibility/liability arising from such misuse and agrees not to hold MOFSL or any of its affiliates or employees responsible for any such
misuse and further agrees to hold MOFSL or any of its affiliates or employees free and harmless from all losses, costs, damages,
expenses that may be suffered by the person
accessing this information due to any errors and delays.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 71934200/ 022-71934263;
Website
www.motilaloswal.com.CIN
no.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road,
Malad(West), Mumbai- 400 064. Tel No: 022 7188 1000.
Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst:
INH000000412. AMFI: ARN - 146822; Investment Adviser: INA000007100; Insurance Corporate Agent: CA0579;PMS:INP000006712. Motilal Oswal Asset Management Company
Ltd. (MOAMC): PMS (Registration No.: INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of MOFSL. Motilal Oswal Wealth
Management Ltd. (MOWML): PMS (Registration No.: INP000004409) is offered through MOWML, which is a group company of MOFSL. Motilal Oswal Financial Services Limited is
a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs,Insurance Products and IPOs.Real Estate is offered through Motilal Oswal Real Estate Investment Advisors II Pvt.
Ltd. which is a group company of MOFSL. Private Equity is offered through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a group company of MOFSL.
Research & Advisory services is backed by proper research. Please read the Risk Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no
assurance or guarantee of the returns. Investment in securities market is subject to market risk, read all the related documents carefully before investing. Details of Compliance
Officer: Name: Neeraj Agarwal, Email ID: na@motilaloswal.com, Contact No.:022-71881085.
* MOSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National
Company Law Tribunal, Mumbai Bench.
3 May 2021
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