The Ruias-promoted Essar Energy Ltd has trimmed the price of its initial public offering in London to 420 pence a share, valuing the entire company at about $8.5 billion (Rs 38,000 crore).
“The public issue, pursuant to which Essar Energy would be listed on the London Stock Exchange, was fully subscribed within the previously proposed price range of 450-550 pence,” Indian wire agency PTI said quoting investment bankers.
Foreign agency Bloomberg said, “Essar Energy’s $2.5 billion initial public offer of its energy and power businesses in London has been fully covered. Most bids came in at the lower end of the 450-550 pence range.”
Sources close to the company told Hindustan Times that the management decided to price the IPO at a lower price of 420 pence “in order to ensure a successful listing and leave more on the table for investors.”
Essar Energy is selling up to 25 per cent stake. Once listed, the Essar Energy stock will be the highest new entrant in the FTSE 100 with a market capitalisation of $8.5 billion.