Essar Group's family considers infrastructure IPO

India’s family-controlled Essar Group is considering listing its infrastructure and ports division in London, with the aim of raising additional capital for further expansion.

The Mumbai-based company, whose operations span steel manufacturing to shipping, is eyeing an initial public offering by early 2012, according to a report in Bloomberg.

However, a spokesman for the family business told CampdenFB that no specific transaction has been proposed yet. “The group is always looking at various options available to it for raising capital, given its significant growth trajectory,” he added.

The spokesman was unwilling to speculate on how the possible listing would dilute the controlling Ruia family’s ownership of the business – the family members currently own a majority stake in all the subsidiary companies.

The multinational industrial conglomerate listed its energy division in London in May last year, raising €1.27 billion. If this IPO goes ahead, it is likely to raise around $750 million (€570 million), according to Bloomberg.

The business, founded by brothers Shashi and Ravi Ruia in 1969, has big plans to expand internationally. Essar Energy, one of its subsidiaries, recently acquired an oil refinery in England as part of its expansion efforts.

Essar Group, which operates in 25 countries and employs 75,000 people, had 2010 revenues of $17 billion, more than half of which was through its energy operations. While Shashi and Ravi are chairman and vice-chairman respectively, other family members also hold top management positions.

Second-generation Rewant, who is a director at the group, was one of CampdenFB’s 40 under 40 next-generation leaders.