Essar Group with a joint venture with British Telecomm is trying to raise Rs.4,500 crore from the stakes of Vodafone to have a growth to its’ own expansion.

The Group already started raising fund from monday and is using non-convertible debentures(NCDs)by keeping itself as the second largest service provider in the country with a stake of 11%. An official said ETHL Communications Holdings that the whollyowned subsidiary of the group’s telecom right arm Essar Teleholdings will issue NCDs to raise Rs. 2,250 crore with an option to raise additional equal amount, depending on subscribers’ interest. “The instruments will carry yield of 8.5-9 .75% with maturity in 2011.”

Recently, Essar Group has transferred 10.97% stakes from its’ Essar Teleholdings to a newly created firm called ETHL Communications Holdings in order to facilitate the fund raising.

The issue will close in 10 days time.