The upcoming initial public offering (IPO) of Novelis, a US subsidiary of Hindalco Industries Ltd, is gaining attention with its fixed price band. The Novelis IPO has set the price range for its public issue at $18 to $21 per share.
Key Details of the Novelis IPO:
- The IPO aims to raise between $931.5 million and $1.08 million, with a green shoe option available to US primary market investors.
- AV Minerals (Netherlands) NV and another shareholder will be offloading 45 million Novelis shares in the IPO.
- After the IPO, Hindalco Industries will retain ownership of 555 million Novelis shares, representing 92.50% of the company’s common shares. This stake could reduce slightly to 91.40% if the underwriters exercise the over allotment option in the green shoe option.
Market Outlook:
- The IPO market is witnessing a resurgence after a quiet period, encouraged by a strong stock market and economic resilience.
- Companies like Reddit and Zeekr received positive responses to their stock offerings earlier this year, signaling a favorable market sentiment.
- Upcoming IPOs, including those from Waystar and Grupo Aeroméxico, suggest a solid IPO calendar for the second half of the year.
Analyst Insights:
- Dan Coatsworth, an investment analyst at AJ Bell, noted that while investors are showing improved risk appetite, commodity prices can be unpredictable, which may affect Novelis’s appeal.
- Novelis, with facilities across North America, South America, Europe, and Asia, specializes in rolling and recycling aluminum.
- The company, based in Atlanta, Georgia, was acquired by Hindalco in 2007, adding to the aluminum and copper manufacturing portfolio of the Aditya Birla Group.
Underwriters:
- Morgan Stanley, BofA Securities, and Citigroup Global Markets are leading the underwriting for the Novelis IPO, known for their expertise and credibility in the market.
Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.
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