Hindalco’s Novelis aims for $12.6 billion IPO valuation

Novelis Inc., a subsidiary of Aditya Birla Group’s metals flagship Hindalco, is gearing up for its initial public offering in the United States with an eye-popping valuation of up to $12.6 billion. The aluminum recycler is looking to raise a substantial amount of up to $945 million by offering 45 million shares at a price range of $18 to $21 each.

The company, which is a leading aluminum solutions provider and the world leader in aluminum rolling and recycling, will list on the New York Stock Exchange under the symbol “NVL”. Hindalco, the parent company of Novelis, revealed in a regulatory filing that the underwriters may be granted an option to purchase additional common shares to cover over-allotments.

After the completion of the IPO, a wholly owned subsidiary of Hindalco will retain a significant ownership stake in Novelis. The offering is being managed by top financial institutions including Morgan Stanley, BofA Securities, and Citigroup.

Hindalco, the parent company of Novelis, reported a strong financial performance for the quarter ended March, with a 32% rise in consolidated net profit. The company’s revenue for the fourth quarter stood at ₹55,994 crore, driven by improved margins across all business segments.

Satish Pai, managing director of Hindalco Industries, highlighted the impressive performance of the company’s copper business and the promising sales trajectory of Novelis. With a focus on enhancing the downstream segment and cost optimization, the company is poised for continued growth and success in the aluminum industry.