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 $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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