US Hedge fund to invest Rs 1500 Crore in Essar Group
DSIJ Intelligence / 26 Oct 2016
According to media reports US hedge fund Farallon Capital has invested about Rs 1500 crore in debt-laden Essar group.The investment in the Essar Group by the US hedge fund is in the form of bridge equity.
According to media reports US hedge fund Farallon Capital has invested about Rs 1500 crore in debt-laden Essar group.
The investment in the Essar Group by the US hedge fund is in the form of bridge equity. This equity investment in the group will definitely a positive news for Essar Steel. The US hedge fund is expected to invest in the offshore entity of the Essar Group which in turn is expected to invest in the Essar steel in the form of equity investments. The media reports further suggest that the shares of the Essar Group founders Shashi and Ravi Ruia will be pledged. The money can be paid back once the Rosneft-Essar Oil deal is over according to the reports.
Rosneft-Essar Oil deal is expected to solve debt issues for the debt ridden group and the development is relished by private lenders such as ICICI Bank as the majority of the investments received is expected to repay the loan by the group.