Novelis IPO: Fresh details have emerged concerning the planned initial public offering (IPO) of US aluminum products maker Novelis Inc. It is learnt that billionaire Kumar Mangalam Birla-led Hindalco Industries is looking to raise a whopping over Rs 8000 crore from the public issue.
Perhaps in what could be one of the biggest IPOs of the year, Hindalco is mulling over seeking about $1.2 billion or over Rs 8300 crore in the planned initial public offering of the US aluminum products maker, Bloomberg news reported.
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Acquired by Hindalco in 2007, Novelis is the world leader in rolled aluminium products, delivering unique solutions for the most demanding global applications, such as beverage cans, automobiles, architecture and consumer electronics.
Novelis IPO
In its proposed public issue of the aluminum products maker, Birla-led Hindalco could target a valuation of about $18 billion or about Rs 150,328 crore. The Bloomberg report further added that Hindalco Industries is studying a possible US IPO for Novelis by September 2024.
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Novelis could get listed on the New York Stock Exchange, the report added. Approvals from the US Securities and Exchange Commission are pending. It is worth mentioning here that Novelis is the world’s biggest maker of flat-rolled aluminum products, used in an array of goods, from cars to soda cans.
Earlier this year in February, the Aditya Birla Group company had said that it had filed confidentially for the listing with the SEC.
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Now, to finally launch the IPO, deliberations are ongoing and details of the fundraising, including size, could change, the Bloomberg report added citing sources. The aluminum products maker may also still decide not to proceed with an IPO, they added.
Worth pointing out here is that Novelis contributed to more than 60 per cent of the Indian company’s revenue last financial year. Under the proposed sale, the stock will be offered by a unit of Hindalco and Novelis won’t receive any proceeds, the people said.
