India's Essar Energy opens for all-investor trade at LSE

7th May 2010, Comments 0 comments

India's Essar Energy, part of the diversified Essar group, started trading formally at the London Stock Exchange on Friday.

Shares of the firm were trading at 385 pence a share at the LSE, exchange data showed Friday, down over eight percent over its issue price.

Essar Energy's initial public offering (IPO) was priced at 420 a pence, which was lowered from a previous range of 450 to 550 pence a share due to volatile financial markets.

The stock opened for all-investor trade Friday, the company said, after it was conditionally traded for three days at the LSE, since May 4.

Conditional trade is limited to financial institutions.

Essar Energy, being carved out of Indian conglomerate Essar Group, had raised nearly two billion dollars in its IPO, making it the largest ever by an Indian company in London.

"A float of this size is a major win for London. Essar Energy is now positioned on our flagship main market alongside its global peers," Xavier Rolet, London stock Exchange's chief executive, said in a statement.

JPMorgan Cazenove Ltd. and Deutsche Bank AG were the joint global coordinators for the offering.

Essar Energy, with assets of eight billion dollars in power, oil and gas businesses, has a total installed generation capacity of 1,220 megawatts.

The Ruias-led company plans to use the proceeds of the IPO to boost its power generation capacity and develop its interests in 14 prospective oil, gas and coal seam gas exploration blocks worldwide.

© 2010 AFP

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