Hindalco Shares Surge 4% on Novelis IPO

New Delhi, May 29 (PTI) Shares of Hindalco Industries jumped nearly 4 per cent to hit a record high on Wednesday as the US-based Novelis Inc, part of the company, will launch an initial public offer to raise up to USD 945 million.

The stock climbed 3.64 per cent to settle at Rs 705.35 apiece on the BSE. During the day, it rallied 4.82 per cent to a record high of Rs 713.40.

On the NSE, shares of the company went up by 3.52 per cent to Rs 705.30 each.

Novelis Inc will launch an initial public offer (IPO) to raise up to USD 945 million, with an estimated equity valuation of up to USD 12.6 billion.

In the proposed public issue, around 45 million shares will be sold by Novelis Inc's sole shareholders A V Minerals (Netherlands) NV, which is a wholly-owned subsidiary of Hindalco Industries Ltd. The company will not receive any proceeds.

Novelis, a leading player in the production of innovative aluminium products and solutions, announced the launch of its roadshow for the IPO of 4,50,00,000 (45 million) common shares held by its sole shareholder.

"The IPO's price per common share is currently estimated to be between USD 18 and USD 21 per share. Novelis has applied to list its common shares on the New York Stock Exchange under the symbol 'NVL'," the company said in a statement on Tuesday.

Recently, Novelis filed papers with the US securities regulator, the Securities and Exchange Commission, for its proposed IPO.

At present, Hindalco owns 100 per cent of Novelis through A V Minerals. Post-IPO, Hindalco will own around 92 per cent stake in Novelis.