On Thursday, Essar Group launched its IPO in London to raise close to $2.5 billion. The money thus raise would be used by the Indian conglomerate for its energy and power business.

This is the biggest IPO in London ever since 2007 where the company sold 20-25 per cent of its stake in Essar Energy to other institutions.

The money is needed so that its growth plans are fuelled. It is looking forward to buy new coal mines for its power business and is also going to bid for oil and gas exploration blocks.

The issue which will close on April 29 is going to be priced in between 450-550 pence for each offering. The information was provided by the people close to the development to news agency, Reuters.

The actual listing will take place in May, the source said.

This IPO is going to be the second largest done by an Indian company. The first was done by Reliance Power, which happened in 2008 and managed to raise Rs. 2.9 billion.

Essar is controlled by Sashi and Ravi Ruia, whose total worth is $13 billion as per the latest Forbes list.