Hindalco Industries announced on Wednesday that its US subsidiary, Novelis Inc., has postponed its initial public offering (IPO) due to unfavorable market conditions. The decision was revealed in a filing to the Bombay Stock Exchange (BSE).
Novelis will continue to assess the appropriate timing for the IPO in the future. Just a few days ago, Novelis had planned to raise up to $945 million through the IPO, aiming for an equity valuation of up to $12.6 billion. The company had already filed the necessary papers with the US Securities and Exchange Commission (SEC).
The proposed public issue involved the sale of approximately 45 million shares by Novelis' sole shareholder, A V Minerals (Netherlands) NV, a wholly-owned subsidiary of Hindalco. Hindalco will not receive any proceeds from the sale.
Currently, Hindalco owns 100% of Novelis through A V Minerals. Following the IPO, Hindalco's ownership would decrease to around 92%. Sources indicate that A V Minerals would receive proceeds between $810 million and $945 million from the IPO. If the greenshoe option is exercised, proceeds could range from $931.5 million to $1.08 billion.
This would mark the second company from the Aditya Birla Group to seek an overseas listing, following Birla Carbon in Thailand. Novelis operates an extensive network of rolling and recycling facilities across North America, South America, Europe, and Asia, and reported a turnover of $16.2 billion in FY24.
