Novelis Postpones US IPO Due to Market Conditions

New Delhi, Jun 5 (PTI) Hindalco Industries on Wednesday announced that its US arm Novelis Inc has postponed its initial public offering (IPO) due to market conditions.

Novelis will continue to evaluate the timing of the offering in the future, Hindalco said in a filing to BSE.

Few days back, Novelis Inc had said it would launch an IPO to raise up to USD 945 million, with an estimated equity valuation of up to USD 12.6 billion. It had also filed papers with the US securities regulator, the Securities and Exchange Commission.

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

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.

According to sources, the sole shareholder of Novelis would receive proceeds of USD 810-945 million. If the greenshoe option is exercised, proceeds are estimated at USD 931.5 million to USD 1.08 billion.

This will be the second company from the Aditya Birla group to go for listing overseas after Birla Carbon (Thailand).

Novelis, which operates an integrated network of technically advanced rolling and recycling facilities across North America, South America, Europe and Asia, posted a turnover of USD 16.2 billion in FY24.

Hindalco's turnover stood at Rs 2,15,962 crore in 2023-24.