Hindalco Industries Ltd. experienced a notable surge of over 5% in its shares after its wholly owned American subsidiary, Novelis Inc., filed confidentially for an initial public offering (IPO) with the U.S. Securities and Exchange Commission (SEC). Novelis revealed that it has submitted a draft registration statement on Form F-1 with the SEC concerning the proposed IPO of its common shares, as stated in a news release on Tuesday.
The proceeds from the IPO will benefit the flagship company of the Aditya Birla Group, with Novelis not receiving any proceeds from the sale of common shares. Hindalco’s acquisition of Novelis in 2007, in a $6 billion all-cash transaction including debt, underlines the strategic importance of this development.
As of 11:28 am, Hindalco Industries’ shares were trading at ₹520.20, reflecting investor optimism surrounding the confidential filing for Novelis Inc.’s IPO.
