Shares of Hindalco Industries Ltd will be in focus during the trading session on Tuesday as its fully-owned subsidiary Novelis Inc filed the registration statement on form F-1 with the Securities and Exchange Commission (SEC) relating to the proposed initial public offering (IPO) of its common shares.
Atlanta-based Novelis is the world’s biggest maker of flat-rolled aluminum products, used in an array of goods, from cars to soda cans. Aditya Birla Group-owned company is making the listing move at a time when the US IPO market is on a rebound this year. It is likely to raise about $1.2 billion via its initial stake sale at an expected valuation of $18 billion.
Novelis Inc intends to list its common shares on the New York Stock Exchange (NYSE) under the ticker symbol 'NVL'. The number of shares to be offered and the price range for the proposed offering have not yet been determined. The company informed about the IPO plans of Novelis in February 2024.
The IPO of Novelis Inc is likely to be entirely an offer-for-sale (OFS) and it will not receive any proceeds from the sale of common shares. The common shares are likely to be offered by AV Minerals (Netherlands) NV, the sole shareholder of Novelis. AV Minerals is also a fully owned subsidiary of Hindalco Industries.
Novelis expects to complete the public offering after the SEC completes its review process, subject to market and other conditions. There can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering, said the company in its filing.
Morgan Stanley, BofA Securities and Citigroup are the 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. BNP Paribas, Academy Securities, Credit Agricole CIB, PNC Capital Markets and SMBC Nikko are the co-managers for the proposed offering.
Shares of Hindalco Industries had settled at Rs 633.40 on Monday, rising 1.25 per cent for the day. The company's total market capitalization stood at more than Rs 1.42 lakh crore for the day.