Hindalco Limited witnessed a downturn in its shares, dropping by over 6% to Rs 607 in the wake of its US subsidiary, Novelis Inc’s decision to delay its initial public offering (IPO). This marks the second consecutive trading session where Hindalco’s shares have seen losses.
Novelis announced its decision to postpone its IPO, stating that it would continue to assess the timing for the public offering in the future.
Last week, Novelis had set a price band for its IPO, ranging from $18 to $21 per share. The plan included offering 45 million shares for sale through the IPO, with Hindalco as the sole selling shareholder. The intention was to list the shares on the US stock markets, aiming to raise between $810 million and $945 million through the offering. At the upper end of the price band, Novelis aimed for a valuation of up to $12.6 billion in its US IPO.
Novelis, recognized as the world’s largest aluminum recycler, serves major global companies such as Coca-Cola, Ford, and Jaguar LandRover.
As of 11:20 am, Hindalco’s shares were trading 0.46% higher at ₹652.05 on the NSE.
