The UltraTech Saga

De-Merger of UltraTech - L&T &

Acquisition by Grasim

L&T Shareholder’s100 %

L&T20 % - UTC

100 % in EPC

Ultra Tech – CemcoCEMENT

L&TEPC division

80%

The Deal

Dilemma of Shareholder…………….

Example: Feb 2004

A shareholder holds 100 shares of L&T Pre-reconstruction Current Market Price Rs500/- Total Value Rs50000/- He has now – 50 shares of L&T and 40 shares of UTC Now if he delivers 40 shares of UTC in open offer He receives Rs13680/- Thus to get same as 50000 L&T price per shares has to be Rs726.40 Re-listing of L&T was at Rs728/- on 19th May 2004

News to Play on…………….Example: SEP 2003

A shareholder holds 100 shares of L&T Pre-reconstruction Current Market Price Rs290/- Total Value Rs29000/- He has now – 50 shares of L&T and 40 shares of UTC Now if he delivers 40 shares of UTC in open offer He receives Rs13680/- Thus to get same as 29000 L&T price per shares has to be Rs306.40 Re-listing of L&T was at Rs728/- Profit of 421.40/- per share

Valuations….

16 Rationale15 MW US COST 75 mn $

375 Exch Rate 506000 COST (cr) 375-25003500

No of Shares 124,396,667 281

281

CapacityCaptive Power

Cement Division - Replacement Cost Basis

Replacement Cost(cr)Enterprise Value Eq (cr)

Value Per share

Enterprise Value Debt (cr)Net Enterprise Value

6635.9 Rationale (in crores)8885.7 MCAP SALES MCAP/Sales

L&T's ABB 1080.7 1141.6 0.95MCAP/Sales 0.76 BHEL 4856.4 6656.3 0.73Sales 6590 SIEMENS 698.8 1087.8 0.64Market Cap 4980 Wt Avg 0.76No of Shares 248,756,219 Value Per Share 200

200

Total Market Cap (Peers)Total Sales (Peers)

EPC Division - Relative Pricing