Aditya Birla Group’s Novelis prepares for US stock market debut

Indian giant goes big: Novelis IPO to be record-breaking overseas listing

On Tuesday, Novelis announced that it has privately submitted a preliminary registration statement on Form F-1 to the SEC regarding its planned initial public offering (IPO). The proposed IPO will involve the sale of common shares by Hindalco Industries, Novelis’ sole shareholder. It is important to note that Novelis will not directly benefit from the proceeds generated by the sale of these common shares.

The company anticipates finalising the public offering once the SEC concludes its review process, taking into account market conditions and other relevant factors. It is worth mentioning that Novelis had previously been listed on the New York Stock Exchange and the Toronto Stock Exchange before being acquired by Hindalco Industries in 2007.

Following the successful conclusion of its IPO, Novelis is poised to join a select group of subsidiaries belonging to Indian companies that are independently listed on foreign stock exchanges.

On Tuesday, Hindalco shares concluded at Rs 511 per share, resulting in a comprehensive valuation of Rs 1.15 trillion. Notably, Novelis has not disclosed specifics regarding the extent of dilution by its promoter or the anticipated valuation for the company.

It’s worth recalling that Hindalco acquired Novelis in 2007 for $6 billion, marking one of the significant acquisitions within India Inc. At a later point in 2020, Novelis further expanded its portfolio by acquiring Aleris Corp, a U.S.-based company, at an enterprise valuation of $2.8 billion.