📷 Image Credits: Moneycontrol
Novelis Inc, the US subsidiary of Hindalco Industries, has decided to postpone its initial public offering (IPO) for now. The company had planned to raise between $810 million and $945 million by offering shares priced between $18 and $21. With an additional greenshoe option, the total proceeds were expected to range from $931.5 million to $1.08 billion. This IPO was anticipated to be the largest ever by an Indian company in the US. The shares to be sold in the IPO were to come from AV Minerals (Netherlands) NV, another subsidiary of Hindalco Industries. After the IPO, Hindalco would have retained 92.5% ownership of Novelis, holding 555 million common shares. Novelis is the world’s largest recycler of aluminum, with customers that include Coca-Cola, Ford, and Jaguar LandRover. The company had clocked strong EBITDA/tonne of $540 in Q4FY24, supporting Hindalco’s operating performance. Novelis, owned by Indian billionaire Kumar Mangalam Birla’s Hindalco Industries, cited market conditions as the reason for postponing the IPO. The aluminum products maker will continue to evaluate the timing of the offering in the future, aiming for a valuation of up to $12.6 billion. Stay tuned for further updates on this developing story.
