The Essar Group, which has sold 49 per cent in its oil business to Russia’s Rosneft, is now considering the sale of a further 25 per cent to other strategic investors.

This is part of its bid to pare debt.

Among potential buyers are the top ten global oil traders, including the Geneva-based Vitol Group and Mercuria Energy Group, said a source aware of the development. However, the names could not be verified independently by BusinessLine .

Huge debt burden

The Essar Group has a net debt of ₹88,000 crore and lenders are growing impatient. The stake sale in Essar Oil is expected to fetch about $6-7 billion. The deal with Rosneft is expected to be completed by July and the additional stake sale is likely to be done by August or September, said the source.

Responding to a query, an Essar spokesperson said: “The transaction for Rosneft to purchase 49 per cent in Essar Oil is at an advanced stage. Appropriate announcements will be made in due course as and when definitive agreements are executed. The proceeds will be primarily used to reduce the group’s debt exposure... Your query on a further stake sale is speculative; the company does not comment on market speculations.”

Essar’s promoters had recently paid ₹3,347 crore to minority shareholders of Essar Oil to get the company delisted. This is the largest payout to public shareholders by any company delisting in India.

With lenders exerting pressure on debt repayment, Essar has been selling key assets. It sold BPO firm Aegis for $610 million and has also reached an agreement to sell its 1.25 million sq ft Equinox Business Park in Mumbai, estimated to be worth ₹2,400 crore.