Indian conglomerate, Essar Energy failed to raise the expected amount from the London Stock Exchange (LSE).

It had expected to raise $2.5 billion from the capital markets, but fell short by $550 million. The reason for this was the falling markets and finally the company had to give up.

Essar Energy is into the business of oil and gas. The final price of its shares was 420p. This is less than 450-550 p range that was given by the company.

This was supposed to be the biggest listing that the stock exchange has seen in the last few years.

Analysts believed that the lower than expected price happened because the Essar shares were priced too high. The investors drew their own conclusions and priced the IPO as they deemed fit.

Essar wants this money to fuel its aggressive expansion plans and Essar Energy is one of the biggest contributor to the group. Besides, it is dealing in the power sector; the demand-supply gap for this is very high.

But, all the plans are moving around the setting up of its power plants and it is yet to see profit.