hindalco shares: Hindalco shares surge 2% after company arm Novelis files 45 million shares in IPO

Shares of Hindalco jumped 2% on BSE in Wednesday’s trade to the day’s high of Rs 695 after the company’s arm Novelis filed to offer 45 million shares in the US initial public offering (IPO) with a price band of $18-21 per share.

Novelis is owned by the Indian conglomerate Aditya Birla Group’s Hindalco and aims to raise up to $945 million in its US public offer, the aluminum manufacturer said on Tuesday and Reuters reported.

Novelis has applied to list its common shares on the New York Stock Exchange under the symbol “NVL”.

Morgan Stanley, BofA Securities and Citigroup are acting as lead book-running managers for the proposed offering with Wells Fargo Securities, Deutsche Bank Securities and BMO Capital Markets acting as additional book-running managers.

Novelis is the world leader in aluminum rolling and recycling and the company on Tuesday announced it has launched a roadshow for its IPO of 45 million of its common shares held by Novelis’ sole shareholder Hindalco Industries, the company release said.”Novelis expects the selling shareholder to grant the underwriters an option to purchase up to an additional 6,750,000 common shares to cover over-allotments, if any, for 30 days after the date of the final prospectus,” the company filing said further. Novelis will not receive any proceeds from the sale of common shares by its sole shareholder, the filing said further.Hindalco shares have gained 63% in the last one year while the stock has increased 33% in the last 6 months.Also read: Adani effect! Paytm shares jump 5% on deal talks between Vijay Shekhar Sharma and Gautam Adani

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