Essar Energy begins formal trading on London bourse

Shares of Essar Energy Plc,a part of the diversified Essar Group,on Friday began formally trading on the London Stock Exchange,after its 1.3-billion public offer,the biggest here since December 2007. The Essar Energy shares were trading at 386.50 pence in the afternoon session on the LSE,down 2.40 per cent,much lower than the IPO price of 420 pence per piece on a day when the LSE index opened nearly 1 per cent down. Essar Energy started conditional trading on the exchange on May 4.

Essar Energy chairman Ravi Ruia,vice-chairman Prashant Ruia and LSE chairman Chris Gibson-Smith,among others,were present at the opening trading ceremony here today. The company has raised 1.3 billion through its premium listing,making it the largest ever Indian IPO on the LSE and the second largest Indian IPO on a public market anywhere in the world, LSE said in a statement. This is the biggest premium listing on the LSE by an international company since the IPO of Eurasian Natural Resources in 2007.

The Ruias-led Essar Energy plans to use the proceeds of the float to increase its power generation capacity and develop its interests in 14 prospective oil,gas and coal seam gas exploration blocks worldwide,among others.

The company had priced the IPO at 420 pence per share,whereas the earlier proposed price range was 450-550 pence apiece. Later,the company fixed the IPO price at 420 pence. Ravi Ruia said the transaction is significant for the Essar Group and India. Despite turbulent global markets,we have made the largest debut on the London market since 2007. The underlying fundamentals of our business remain strong. Indias growing demand for energy remains a significant opportunity,and one that we are confident that we are well placed to meet, Ravi Ruia said.