Novelis Inc., a US-based subsidiary of Hindalco Industries, has announced plans to launch an initial public offering (IPO) aimed at raising up to $945 million. The IPO is expected to value the company’s equity at up to $12.6 billion. In the proposed public issue, nearly 45 million shares will be sold by Novelis Inc.’s sole shareholder, A V Minerals (Netherlands) NV, which is a wholly-owned subsidiary of Hindalco Industries Ltd. Novelis will not receive any proceeds from this offering.
Novelis, a global leader in the production of innovative aluminium products and solutions, announced the commencement of its roadshow for the IPO, wherein it plans to sell 45 million common shares held by A V Minerals. The IPO’s price per share is anticipated to be between $18 and $21. Novelis has applied to list its shares on the New York Stock Exchange under the ticker symbol ‘NVL’.
The company recently filed documents with the US Securities and Exchange Commission (SEC) for the proposed IPO. Currently, Hindalco owns 100 per cent of Novelis through A V Minerals. After IPO, Hindalco will retain nearly 92 per cent ownership in Novelis. “The selling shareholder is expected to grant underwriters an option to purchase up to an additional 6.75 million shares to cover over-allotments, if any, within 30 days following the final prospectus,” Novelis said .
According to sources, the proceeds for the sole shareholder, A V Minerals, are estimated to be between $810 million and $945 million. If the greenshoe option is exercised, the proceeds could range from $931.5 million to $1.08 billion. The equity valuation of Novelis is projected to be between $10.8 billion and $12.6 billion, with the enterprise valuation estimated between $15.2 billion and $17 billion.
Earlier this month, Novelis indicated that it aims to complete the public offering once the SEC’s review process is finalised, 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,” the company noted.
Novelis, a subsidiary of Hindalco Industries Ltd — a leader in aluminium, copper, and metals, and a flagship company of the Aditya Birla Group — will be the second firm from the Aditya Birla group to list overseas, following Birla Carbon (Thailand). Novelis operates a comprehensive network of advanced rolling and recycling facilities across North America, South America, Europe, and Asia, and reported a turnover of $16.2 billion in FY24. Hindalco’s turnover for the same period was Rs 2,15,962 crore.