Hindalco's Unit Novelis Plans To Raise Up To $945 Million In US IPO
Novelis intends to sell 45 million shares, pricing them in the range of $18 to $21 per share.
Hindalco Industries Ltd.'s American subsidiary Novelis plans to raise up to $945 million through an initial public offering, as it prepares for its stock market debut on the New York Stock Exchange.
Novelis intends to sell 45 million shares, pricing them in the range of $18 to $21 per share, the company said in a filing with the US Securities and Exchange Commission.
Hindalco had acquired Novelis in 2007 for $6 billion. The decision to take Novelis public follows the company's announcement in February that it will bid for critical minerals exploration sites being auctioned by India, as part of its green energy shift.
Hindalco will possess 92.5% of Novelis' shares after the IPO, the statement said, adding that Novelis will not receive any proceeds from the sale of common shares by its sole shareholder.
The prospective IPO arises as Hindalco aims to leverage the Atlanta-based company's status as the foremost global producer of flat-rolled aluminium items, utilised in automobiles and beverage packaging.
Morgan Stanley, BofA Securities, and Citigroup are serving as lead book-running managers for the proposed offering, with Wells Fargo Securities, Deutsche Bank Securities, and BMO Capital Markets acting as additional book-running managers, the company said.
Shares of Hindalco extended gains for the second consecutive trading session on Tuesday and ended 0.5% higher, as compared with a 0.2% decline in the benchmark NSE Nifty 50.
