Essar London IPO fully covered

Essar Group’s $2.5 billion initial public offer of its energy and power businesses in London has been fully covered,and may be priced slightly below the indicated range,two sources with knowledge of the matter said on Friday.

Most bids came in at the lower end of the 450-550 pence range,the sources said. They declined to be identified as they were not authorised to speak to the media.

Essar Group,controlled by billionaire brothers Shashi and Ravi Ruia,plans to sell a 20-25 per cent stake in Essar Energy and will use the proceeds to fund projects including the acquisition of coal mines and the development and exploration of oil and gas blocks,the company said earlier this month.