Essar Energy to raise up to USD 3 bn; list on LSE: P Ruia

London, Apr 8 (PTI) Ruias-led Essar Group Thursday
announced that it will launch its first share sale offer, the
largest by an Indian entity, of its energy businesses to raise
up to USD 3 billion (over Rs 13,500 crore) and list the same
on the London Stock Exchange.
Announcing the intention to go with the public offer,
Essar Energy Vice Chairman Prashant Ruia said that offering of
20-25 per cent shares in the entity would be to institutional
investors in the UK for which it has sought regulatory
approvals.
"This will be a landmark event both for Essar Group and
Essar Energy... At the time of the offer we would have already
USD 2 billion of capital in Essar Energy... a London listing
gives us an excellent platform to showcase the potential of
the Indian market to the world," Essar Energy Chairman Ravi
Ruia said.
Prashant Ruia said, "now is the right time to open the
business to global capital to fuel future growth ambition and
address India's significant energy deficit. This offer will
help us bridge that deficit while allowing international
investors access to India's growth story."
The proceeds are aimed at funding the equity component of
existing growth projects for setting up power generation
capacity, exploration and development of oil and natural gas
blocks and completion of first phase of expansion of Vadinar
refinery project to take its capacity to 18 million tonnes.
The completion of the phase I and II power projects as
also acquisition and development of captive coal mines to
raise Essar Energy's total capacity to 11,470 MW would account
for the bulk of the deployment.
Upon completion of the offer, Essar Group would continue
to hold a minimum of 75 per cent equity of Essar Energy, which
would operate oil and gas businesses through Essar Oil, a
listed entity in India with a public float of 11.42 per cent.
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