Hindalco shares in focus today as Novelis files for a confidential IPO in US

Shares of Hindalco Industries Ltd will be in focus on Wednesday as its US-based fully owned subsidiary Novelis Inc filed for an initial public offering (IPO) with the Securities and Exchange Commission (SEC). The company informed about the same through an exchange filing on Tuesday.

Novelis Inc has confidentially submitted a draft registration statement on form F-1 with the SEC relating to the proposed primary stake sale of its common shares. The common shares are expected to be offered by Novelis’ sole shareholder AV Minerals (Netherlands), a fully owned subsidiary of Hindalco.

According to the regulatory filing with US bourses, Novelis would not receive any proceeds from the sale of common shares by its sole shareholder. Novelis is expected to complete the public offering as soon as the SEC completes its review process, subject to market and other conditions.

No other details about the IPO have been made public as the draft registration statement has been filed confidentially. Novelis Inc is a sustainable aluminum solutions provider and the world leader in aluminum rolling and recycling.

Shares of Hindalco Industries have been under pressure in the last couple of sessions after Novelis revised its return guidance for the Bay Minette project. Novelis said that the project shall see a delay of one year in completion and increased cost of capital by 65 per cent to $4.1 billion.

Hindalco shares have fallen more than 12 per cent since February 13 after Novelis came up with the guidance. The Aditya Birla Group firm settled at Rs 511.80 on Tuesday, down maringally on BSE.

Also read: Stock recommendations by analysts for February 21: Gujarat Alkalies, PNB and SBI Life

Also read: ZEE shares in focus after stock exchange clarification on Sony merger, Sebi report