Novelis files registration statement for proposed IPO

14 May 2024

Synopsis

The wholly-owned subsidiary of Hindalco Industries intends to list its shares on the New York Stock Exchange under the symbol “NVL”.

Novelis files registration statement for proposed IPO

MUMBAI – Nearly three months after it first submitted a draft registration statement for its proposed listing in the US, Novelis Inc has now filed a registration statement on Form F-1 with the Securities and Exchange Commission.

The wholly-owned subsidiary of Hindalco Industries intends to list its shares on the New York Stock Exchange under the symbol “NVL”.

As its sole shareholders, proceeds from the sale of the shares will only go to Hindalco Industries, but the number of shares which will be sold and its price range are yet to be determined, the company said in its statement.

“Novelis expects to complete the public offering after the SEC completes its review process, subject to market and other conditions,” it said.

In a report last week, Bloomberg said that Hindalco is looking at a valuation of $18 billion, and could raise $1.2 from the sale of shares in Novelis. The report also said that the world’s largest producer of flat rolled products could be listed in the US by September.

Morgan Stanley, BofA Securities and Citigroup will be the lead book-running managers for the share sale, along with Wells Fargo Securities, Deutsche Bank Securities and BMO Capital as the additional book-running managers.

BNP PARIBAS, Academy Securities, Credit Agricole CIB, PNC Capital Markets LLC and SMBC Nikko will be the co-managers for the initial public offering, the company said.

Novelis’ listing in the US will not only be the first for the Aditya Birla Group, but also the first by a large Indian conglomerate.

The proposed listing plan comes while the company is building its first fully integrated facility at Bay Minette, US, on which it will be spending a little over $4 billion for a capacity of 600,000 tonnes. This project is to be commissioned in the second half of 2026, after which the company will look at doubling capacity through the brownfield route.

Novelis is the world’s largest recycler of aluminium sheets and also has a major presence in beverage packaging, automobiles and aerospace. It was acquired by Hindalco in 2007 for $6 billion, one of the largest purchases in the industry at the time.

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