Hindalco-owned Novelis aims for $12.6 billion valuation with US IPO
Novelis Inc, a subsidiary of Hindalco Industries, is targeting a valuation of up to $12.6 billion, through its initial public offering (IPO) in the United States. The aluminum producer plans to offer 45 million shares at an estimated price band between $18 and $21 per stock. As per documents filed with the US Securities and Exchange Commission (SEC), Hindalco wants to raise up to $945 million from this offering.
Hindalco to retain majority ownership post-IPO
Post-IPO, Hindalco, owned by billionaire Kumar Mangalam Birla, will retain approximately 92.5% ownership of Novelis. The company's exchange filing stated, "Following the IPO, Hindalco whose wholly owned subsidiary, AV Minerals (Netherlands) NV (the 'selling shareholder'), is our existing sole shareholder, will beneficially own approximately 92.5% of our outstanding share capital." This implies that Hindalco will control about 92.5% of the voting power post-offering.
Novelis to list on NYSE, major banks to manage IPO
Novelis plans to list on the New York Stock Exchange (NYSE) under the symbol "NVL." The joint book-running managers for the proposed IPO are Morgan Stanley, BofA Securities, and Citigroup Global Markets. Additional book-running managers comprise Wells Fargo Securities, Deutsche Bank Securities, and BMO Capital Markets. Other co-managers for the issue are BNP Paribas, Credit Agricole CIB, Academy Securities, PNC Capital Markets LLC, and SMBC Nikko.
Hindalco reports profit increase amid strong demand
Hindalco reported a 32% year-on-year increase in its consolidated net profit to ₹3,174 crore for the quarter ended March. This rise was driven by strong margins and volumes across aluminum and copper businesses. According to Satish Pai, managing director of the firm, the demand for copper and aluminum remains very strong in India. The proposed IPO comes amid positive indications of a turnaround in the US IPO market in 2024.
