Essar Energy Slashes Asking Rate of London IPO
It has been reported that Essar Energy has slashed its asking price for the London IPO to about 420 pence for every share taking the price to about $2.5 billion, which is incidentally very much below the initial price range that they had planned for the IPO.
It was previously reported that Essar was actually considering lowering the prices but it was not expected that they would actually go below the price range of 450p - 550p, which was announced before formally announcing the rate which they have decided upon.
The company, which is under the control of the billionaire brothers Ravi and Sashi Ruia, is planning to sell almost 20 -25% stake and the proceeds are expected to fund their next projects which was reported to include the acquisition of a coal mine and it was also announced that the company was also planning to develop and explore further into the gas and oil blocks.
The reason for the lowering of the prices was reported to be to make sure that they had a successful listing and also for the benefit of the investors.