Novelis Inc., the U.S. subsidiary of Hindalco Industries, has decided to postpone its initial public offering (IPO) because of current market conditions. The company will keep evaluating when to proceed with the IPO in the future.
Novelis had aimed to raise between $810 million and $945 million from the IPO, with a price range of $18 to $21 per share, as announced by Hindalco Industries last week.
Including the green shoe option, which allows for additional shares to be sold, the total proceeds from the IPO were expected to be between $931.5 million and $1.08 billion.
AV Minerals (Netherlands) NV, another subsidiary of Hindalco Industries and the sole shareholder of Novelis, was planning to sell 45 million Novelis shares in the IPO. After the IPO, Hindalco Industries would still own 555 million Novelis shares, equating to a 92.5% stake in the U.S. subsidiary.
The Novelis IPO was set to be the largest by an Indian company in the U.S. Novelis, the world’s largest recycler of aluminum, serves customers like Coca-Cola, Ford, and Jaguar Land Rover, and was aiming for a valuation of up to $12.6 billion in its U.S. IPO.
Hindalco, part of the Aditya Birla Group, acquired Novelis in 2007.
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