Tata Welspun Deal

Valuation of Welspun Renewables Contents 1.0

An Overview Overview of the Renewable enewable Power Power Industry Industry in India...... India.............. ................... ..................... ...........3 .3

1.1 Current Power Market Struture...................................... Struture.................................................................. .................................. ...... 3 1.! Power "eneration "eneration Mi#........................................ Mi#........................................................................... ............................................... ............ 3 1.3 "overn$ent Poliy................................... Poliy...................................................... ............................................... ...................................... .......... % 1.3 Chan&es to Re&ulatory Re&ulatory 'nviron$ent in this setor..................................... setor............................................% .......% !.0 (els)un (els)un Renewable Renewable 'ner&y Pvt. *td +(R'P*, Overview............................... Overview................. ..................... .......3.0 ata ata Power Renewable Renewable 'ner&y +PR'*, Overview/................................................ Overview/................................................  %.0 esri)tion of Pro2et Pro2et Ativity  About eal.......................................................... 4 %.1 eal Struture and Means of 5inane...................... 5inane.......................................... ....................................... ...................... ...4 4 6.0 7ey Assu$)tions and Results Results of the 5inanial 5inanial Model for the Pro2et............. Pro2et........ ........... .......8 .8 6.1 Assu$)tions.................... Assu$)tions........................................ ........................................ ....................................... .......................................... ....................... 8 6.! Results of the 5inanial Model........................................ Model.................................................................. ................................. ....... 11 -.0 7ey risks involved and their $iti&ation $easures......................................... $easures.............................................. .....11 11 -.1 Stee)ly fallin& Solar ari9.................................... ari9........................................................ ............................................ ........................ 1! -.! i$ely Pay$ent by distribution distribution o$)anies..................................................... o$)anies.....................................................1! 1! -.3 Availability Availability of lower debt rates for re:nanin&..................... re:nanin&............................................. ...........................1! ...1! -.% *ower )lant load fator +P*5,....................................................... +P*5,........................................................................... ....................1! 1! -.6 ;i&hly ; i&hly levera&ed ata Power ustify (els)un 10?000 Cr. Cr. )aid by ata ata )ower................................................ 16 4.! ;ow ; ow PR' 5inane this deal...................................... deal.......................................................... .......................................1...................1.3 (hat PR' an earn in this deal...................................... deal......................................................... ................................ .............11.% (hat should be PR' Strate&y to de@risk its a=uisition....................... a=uisition................................. ..........114.0