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  • Particulars Amount (INR CRS.) WACC - 9.5% Amount (INR CRS.) WACC - 8.75% Essar's Value at 81.4%

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    Puneet Mittal
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    The document calculates the equity value of Essar under two repayment scenarios - repayment as per the original schedule, and early repayment. If repaid as scheduled, the equity value is between Rs. 536.7 crores and Rs. 667.7 crores depending on the WACC rate used, whereas early repayment results in a higher equity value between Rs. 557.9 crores and Rs. 686.5 crores.

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    NPV sheet

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    The document calculates the equity value of Essar under two repayment scenarios - repayment as per the original schedule, and early repayment. If repaid as scheduled, the equity value is between Rs. 536.7 crores and Rs. 667.7 crores depending on the WACC rate used, whereas early repayment results in a higher equity value between Rs. 557.9 crores and Rs. 686.5 crores.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    20 views1 page

    Particulars Amount (INR CRS.) WACC - 9.5% Amount (INR CRS.) WACC - 8.75% Essar's Value at 81.4%

    Uploaded by

    Puneet Mittal
    The document calculates the equity value of Essar under two repayment scenarios - repayment as per the original schedule, and early repayment. If repaid as scheduled, the equity value is between Rs. 536.7 crores and Rs. 667.7 crores depending on the WACC rate used, whereas early repayment results in a higher equity value between Rs. 557.9 crores and Rs. 686.5 crores.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 1

    Equity value when repayment as per schedule:

    Particulars Amount (INR Crs.) Amount (INR Crs.)


    WACC – 9.5% WACC – 8.75%
    NPV 916 1077
    Essar’s value @ 81.4% 745.5 876.5
    Less: CCD payment (EPOL) 158.8 158.8
    Less: Past Creditor 50 50
    Total 536.7 667.7

    Equity value when early repayment is done:

    Particulars Amount (INR Crs.) Amount (INR Crs.)


    WACC – 9.5% WACC – 8.75%
    NPV 942 1100
    Essar’s value @ 81.4% 766.7 895.3
    Less: CCD payment (EPOL) 158.8 158.8
    Less: Past Creditor 50 50
    Total 686.5
    557.9

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