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19 Nov 2024
Novelis Inc, the US subsidiary of Hindalco Industries, has finalised a price band of $18-21 per share for its proposed initial public offering (IPO). The company intends to raise $810-945 million through the IPO. With a greenshoe option, the proceeds are estimated to be in the range of $931.5 million to $1.08 billion.
The Novelis IPO is slated as the biggest by an Indian company in the US, sources close to the development said. The company’s sole shareholder AV Minerals (Netherlands) NV, another wholly-owned subsidiary of Hindalco Industries, will offload about 45 million shares through the IPO. Following the completion of the IPO, Hindalco will own 555 million of Novelis’ common shares, or 92.5% of the outstanding common shares.
With the greenshoe option, if the underwriters exercise their over-allotment option in full, Hindalco will hold a 91.4% stake in Novelis. With a total of 600 million shares, the Aditya Birla Group firm would be valued at $10.8-12.6 billion, they said.
In a release, the company said it has kicked off the roadshows for the IPO. Novelis will not receive any proceeds from the sale of common shares by its sole shareholder.
Following the IPO, the company would list its shares on the New York Stock Exchange under the symbol NVL.
Based on the net debt of $4.35 billion, as per the earlier document filed with US Securities and Exchange Commission (SEC), the firm’s enterprise valuation is estimated to be in the range of $15.2-17 billion.Earlier in February, Atlanta-based Novelis had filed a draft registration statement with the SEC on a confidential basis for an IPO.
Morgan Stanley, BofA Securities and Citigroup are the lead book-running managers for the IPO, with Wells Fargo Securities, Deutsche Bank Securities and BMO Capital Markets acting as additional book-running managers. BNP PARIBAS, Academy Securities, Credit Agricole CIB, PNC Capital Markets and SMBC Nikko are the co-managers.
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