Essar to raise $3 bn through IPO in LSE

Ruias-led Essar Group is set to launch the largest public offer by an Indian entity.

Ruias-led Essar Group is set to launch the largest public offer by an Indian entity with plans to raise up to USD 3 billion through sale of shares of its energy venture and a listing on London Stock Exchange.

The group,led by billionaire industrialist brothers

Shashi and Ravi Ruia,is looking to sell 20-25 per cent shares of its energy (oil and power) business,to raise USD 2.5-3.0 billion (about Rs 14,000 crore) to part finance its estimated Rs 40,000 crore investment plans in the next 3-4 years.

The proposed initial public offer could give Essar’s energy business a

valuation of about USD 12 billion (nearly Rs 56,000 crore),sources close to the development said.

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When contacted,an Essar Group spokesperson said,”Essar group is always looking at a range of different funding options but has not yet made any specific decision with regard to further financing.”

The share sale would possibly make it the largest ever public offering by an Indian entity — surpassing even that of Anil Ambani group’s Reliance Power that currently holds the record for raising Rs 11,800 crore two years ago.

Meanwhile,quoting sources,the UK daily Financial Times said,”JP Morgan and Deutsche Bank have been appointed to advice the company on the fund raising.”

“The group works with a range of financial advisors to assist it (on fund raising),” the spokesperson added.