Hindalco Industries Gains After US arm Novelis files for IPO – Check Details

The share price of Hindalco Industries gained on February 21, 2024, a day after Its US arm Novelis filed for IPO.

Novelis Inc., a leading sustainable aluminum solutions provider and the world leader in aluminum rolling and recycling, announced that it has confidentially submitted a draft registration statement on Form F-1 with the Securities and Exchange Commission (SEC) relating to the proposed initial public offering of its common shares, Hindalco said in an exchange filing.

Novelis’ sole shareholder, a wholly-owned subsidiary of Hindalco Industries Limited, is expected to offer the common shares. Novelis will not receive any proceeds from the sale of common shares by its sole shareholder. Novelis expects to complete the public offering after the SEC completes its review process. It is subject to market and other conditions, the filing mentioned.

Of late, Novelis announced on February 13 that the capital cost of the Bay Minette project has increased by 65 percent to $4.1 billion, putting Hindalco’s stock price under pressure. According to the management, they expect to complete the project by the end of CY2026 or the second half of FY27, and they also mentioned that the revision will reduce returns from ‘mid-teens’ to ‘double digits.’

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During its earnings call with analysts, Hindalco revealed that its net debt at the end of December 2023 was Rs 34,835 crore. In the Indian operations, there was net cash of Rs 3,632 crore. Novelis’ net debt stood at Rs 38,467 crore. Hindalco India operations prepaid long-term debts of Rs 4,370 crores during the quarter.

At 10:42 AM, Hindalco Industries’ share price gained 1.82 percent or Rs 9.30. It was trading at Rs 521.10 per share on BSE.

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