India's Essar Energy has lowered the price for its initial public offering on the London Stock Exchange as recent volatility on stock markets following a wave of credit downgrades in Europe rattled investor confidence this week.

However, unlike Russian fertiliser producer UralChem Holding which pulled its planned IPO Thursday after insufficient demand from investors, Essar Energy had already closed its order books at the higher price range and is pushing ahead with the listing with trading due to start May 4, the company said in a statement.