Hindalco's Novelis Inc Postpones Highly Anticipated IPO Amid Market Conditions

Hindalco Industries has announced the postponement of its US arm Novelis Inc's IPO due to current market conditions. The company had previously aimed to raise up to USD 945 million, valuing the equity at USD 12.6 billion. Hindalco now evaluates the best timing for the offering.

In a recent development, Hindalco Industries revealed on Wednesday that its US-based subsidiary Novelis Inc has deferred its initial public offering (IPO) in light of prevailing market conditions. This significant move was confirmed through an official filing to the Bombay Stock Exchange (BSE).

A few days prior, Novelis Inc had outlined plans for an IPO intended to generate up to USD 945 million, with an overarching equity valuation pegged at roughly USD 12.6 billion. The company had already submitted necessary documentation to the US Securities and Exchange Commission.

The proposed public issue envisaged the sale of around 45 million shares by Novelis' sole shareholder, A V Minerals (Netherlands) NV, which is a wholly-owned subsidiary of Hindalco Industries. Currently, Hindalco retains full ownership of Novelis through A V Minerals. Post-IPO, this ownership would adjust to around 92 per cent.