Novelis Inc, a subsidiary of Hindalco Industries, has lodged papers for an initial public offering (IPO) aiming to amass around £715 million. The company, an integral part of the Aditya Birla Group, eyes an equity valuation reaching up to £9.5 billion.
The IPO entails the sale of approximately 45 million shares by Novelis’ sole shareholder, A V Minerals (Netherlands) NV, a wholly-owned subsidiary of Hindalco Industries. Novelis itself will not accrue any proceeds from this venture.
“The projected price per common share for the IPO stands between $18 and $21 per share. Novelis has formally sought listing of its common shares on the New York Stock Exchange under the symbol ‘NVL’,” the company declared on Tuesday.
Hindalco currently commands full ownership of Novelis through A V Minerals. Following the IPO, Hindalco will uphold roughly 92 percent of its stake in Novelis. The sole shareholder anticipates receiving proceeds ranging from £610 million to £715 million, with the possibility of escalation to £810 million if the underwriters opt to acquire an additional 6.75 million shares.
The equity valuation of Novelis is estimated to fluctuate between £8.1 billion and £9.5 billion. The enterprise valuation could vary from £11.4 billion to £12.8 billion.
Novelis operates an extensive network of rolling and recycling facilities spanning North America, South America, Europe, and Asia. The company recorded a turnover of £12.3 billion in FY24. This IPO marks the second overseas listing for an Aditya Birla Group company, following Birla Carbon (Thailand).
