- Hindalco Industries, led by Indian billionaire Kumar Mangalam Birla, is reportedly considering an initial public offering (IPO) for its US-based division, Novelis, seeking about $1.2 billion, according to Bloomberg.
- Novelis, the world’s largest manufacturer of flat-rolled aluminium products, could be valued at $18 billion in the IPO, with a potential listing on the New York Stock Exchange by September, subject to approval from the US Securities and Exchange Commission.
- The specifics of the fundraiser, including its magnitude, may change, and the company may decide not to proceed with an IPO, according to sources cited by Bloomberg.
Hindalco Industries is reportedly planning an IPO for its US division, Novelis, seeking about $1.2 billion. The IPO could value Novelis at $18 billion and could be listed on the New York Stock Exchange by September.
Hindalco’s Billion-Dollar IPO Plan for Novelis
Hindalco Industries, the Indian conglomerate led by billionaire Kumar Mangalam Birla, is reportedly considering an initial public offering (IPO) for its US-based division, Novelis. According to a Bloomberg report, the company could be seeking about $1.2 billion from the IPO. Novelis is the world’s largest manufacturer of flat-rolled aluminium products, which are used in a variety of goods, including cars and pop cans.
Potential Valuation and Listing
Bloomberg’s sources suggest that Hindalco may aim for a valuation of $18 billion for Atlanta-based Novelis. The Indian group may attempt to list Novelis on the New York Stock Exchange by September, subject to approval from the US Securities and Exchange Commission. However, discussions are still ongoing, and the specifics of the fundraiser, including its magnitude, may change. The company may yet decide not to proceed with an IPO.
Novelis’ Financial Performance
On Monday, May 6, Novelis announced its March quarter results. The aluminium products firm saw a 6% rise in earnings to $166 million over the same period last year. However, there has been a 9% decrease in earnings throughout the full year. The company’s income has decreased by 7% to $4.1 billion, due to a drop in the average price of aluminum. The company did clarify that the increase in shipments made up for some of the pricing decrease. Total exports of flat-rolled products grew by 2% to 951 kilo tons in the March quarter of last year, partly due to a rise in the demand for beverage packaging sheets.
Conclusion
The potential IPO of Novelis could be a significant move for Hindalco Industries, potentially raising $1.2 billion and valuing the US division at $18 billion. However, the plan is still in its early stages, and the specifics may change. Investors and market watchers will be closely following the developments, given Novelis’ position as the world’s largest manufacturer of flat-rolled aluminium products.
