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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Essar Energy - Exciting new India-focused energy firm set to join FTSE 100

May 2010

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

With the oil price hitting new highs again Essar Energy, an India-focused energy firm, with operations spanning exploration & production, oil refining and power generation, seems to have chosen the perfect time to announce its intention to float on the Full List. The company, which has chosen JP Morgan Cazenove to act as its sole sponsor and financial adviser, is hoping to raise US$2.5bn. through the sale of up to 25% of its equity, with its parent company, Essar Group retaining the remaining 75%. The float would value it at up to US$10bn (£6.6bn), which should take it straight into the FTSE-100. If it succeeds it would be the largest Indian company to float in London since copper miner Vedanta Resources, which, helped by soaring co ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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