New Delhi: The Essar Group is looking to raise cash for its expansion plans. The company says it will raise $2.5 billion by selling shares in its energy business to institutional investors. Essar expects it will have to sell 20-25% of Essar Energy to raise the money. Proceeds from the sale will help Essar buy coal mines and develop more oil and gas blocks.
Steel company SAIL is now a step closer to its follow-on public offer. On Thursday, the Union cabinet approved a stake sale in the company that will have two components. One component will see the government divesting a part of its holdings for an estimated Rs8,000 crore. The second component will involve SAIL selling fresh equity to the extent of 10% of its current holding. That sale is expected to bring in another Rs8,000 crore. SAIL’s public offer will take place in two tranches. Each of the tranches will involve both the components.
Real estate firm Emaar MGF says half the money it raises from its IPO will be used to service debt. Emaar MGF currently has a debt of Rs5,000 crores that’s due over the next two years. The company expects to raise about Rs3,500 crores from its IPO.
A hike in interest rates just got more likely. Data released on Thursday shows the food price index increased 17.7% in the year to 27 March. That’s a significant increase over the previous week, when the index rose 16.35%. The inflation figure comes a day after the government’s chief statistician warned that the RBI would have to increase policy rates if inflation continued to go up.