New Delhi [India], June 5 : Novelis, a subsidiary of Hindalco Industries, has postponed its initial public offering (IPO) due to market conditions. The company informed the exchange of this decision in a filing on Wednesday.
The company in an official statement says that Novelis Inc., a wholly owned subsidiary of the Company (Hindalco) has announced the postponement of its initial public offering due to market conditions. Novelis will continue to evaluate the timing of the offering in the future.
Earlier, on May 28, Hindalco announced that its US subsidiary Novelis would be launching an IPO of 45,000,000 common shares held by Novelis' sole shareholder, a wholly owned subsidiary of Hindalco Industries Limited.
The company aimed to raise between USD 810 million and USD 945 million through the offering. The price per common share for the IPO was estimated to be between USD 18.00 and USD 21.00 per share.
Novelis had applied to list its common shares on the New York Stock Exchange under the symbol "NVL." Notably, Novelis will not receive any proceeds from the sale of common shares by its sole shareholder.
The offering was initially set to raise substantial funds and list on the New York Stock Exchange, but will now be re-evaluated for a future date.
Following the completion of the IPO, Hindalco would retain ownership of 555,000,000 shares of Novelis' common stock, representing 92.5 per cent of Novelis' total outstanding common shares.
The decision to postpone the IPO comes as market conditions have become less favourable, prompting Novelis to reconsider the offering. The company also informed that the decision will be reevaluated in the future.
The shares of Hindalco Industries on the National Stock Exchange have declined by more than 6 per cent in the last five trading sessions. At the time of filing this report, the shares of the company trading at Rs 653.15
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