Hindalco Shares Extend Gains To 3rd Day As Novelis Inches Closer To U.S. IPO

Hindalco’s share price continued to make gains for the third straight session on Tuesday going up around 2.5% to hit an intraday high of ₹1,649.50.

What Happened: The stock is upbeat today as its fully-owned subsidiary, Novelis Inc., filed a registration statement on Form F-1 with the US Securities and Exchange Commission (SEC). The filing outlines Novelis Inc.’s intention to list its common shares, offered by sole shareholder AV Minerals, on the New York Stock Exchange (NYSE) under the ticker symbol "NVL."

The number of shares to be offered and the price band for the proposed IPO have not yet been determined, the company plans to finalise these details after the SEC completes its review.

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Morgan Stanley, BofA Securities, and Citigroup are the lead book-running managers for the proposed IPO, 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 LLC, and SMBC Nikko will serve as co-managers for the proposed offering.

Hindalco is reportedly seeking to raise $1.2 billion through the IPO of its Atlanta-based unit, Novelis, with some reports estimating the proposed valuation at about $18 billion. Earlier in the month, Novelis posted its earnings for the quarter ended March. The company experienced a 7% year-on-year decrease in net sales, amounting to $4.1 billion (approximately ₹33,600 crore). The company reported a 28% year-on-year increase in operating profit or EBITDA, reaching $514 million (around ₹4,220 crore).

Price Action: Hindalco's share price was up 1.99% to trade at ₹646.10 in the early hours of trading on Tuesday.

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