Aditya Birla Group firm Hindalco is looking to raise USD 945 million through the initial public offering (IPO) of its subsidiary Novelis in the US.
Under the IPO, Novelis, a leading sustainable aluminum solutions provider, is offering 45 million shares held by its sole shareholder Hindalco Industries, representing 7.5 per cent stake in the company.
The price band has been set at $18 and to $21 per share for the public issue, Hindalco Industries said in a disclosure to the stock exchanges on Tuesday.
At the upper end of the price, the IPO size is estimated at $945 million.
Since the issue is completely an offer for sale (OFS), Novelis will not receive any proceeds from the sale of common shares. Post the completion of the IPO, Novelis will list its common shares on the New York stock Exchange (NYSE) under the symbol ‘NVL.’
After the IPO, a wholly owned subsidiary of Hindalco will own 555 million shares of Novelis, representing 92.5% of Novelis’ total outstanding common shares (or 91.4% if the underwriters fully exercise their over-allotment option).
Novelis expects the selling shareholder to give the underwriters a 30-day option to purchase up to an additional 6,750,000 common shares to cover over-allotments after the final prospectus date.
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.
In addition, BNP PARIBAS, Academy Securities, Credit Agricole CIB, PNC Capital Markets LLC and SMBC Nikko are acting as co-managers for the proposed offering.
Shares of Hindalco Industries were trading at 1.38% higher at Rs 689.95 on the BSE around 9.28 am.
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