Aditya Birla subsidiary Novelis files for US IPO, price band at $18-21 per share

Aditya Birla-subsidiary Novelis Inc has filed for IPO in US, offering 45 million shares in a price band of $18-21 per share.

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Aditya Birla-subsidiary Novelis Inc has filed for IPO in US, offering 45 million shares in a price band of $18-21 per share.

On May 14, Aditya Birla's fully-owned subsidiary Novelis Inc had filed the registration statement on Form F-1 with the US Securities and Exchange Commission (SEC).

Morgan Stanley, BofA Securities and Citigroup are the lead book-running managers for the proposed IPO with Wells Fargo Securities, Deutsche Bank Securities and BMO Capital Markets acting as additional book-running managers. BNP Praibas, Academy Securities, Credit Agricole CIB, PNC Capital Markets LLC and SMBC Nikko will be co-managers for the proposed offering.

Also Read: Hindalco stock rises as subsidiary Novelis files registration statement for US IPO

Novelis is the world’s biggest maker of flat-rolled aluminium products, used in an array of goods, from cars to soda cans. Hindalco purchased Novelis in a multibillion-dollar deal in 2007.

Owned by billionaire Kumar Mangalam Birla's Hindalco Industries, the company is planning to raise $945 million at the upper end of the price band and is targeting a valuation of up to $12.6 billion. Novelis has applied to list its common shares on the New York Stock Exchange under the ticker ‘NVL’.

The company will not receive any proceeds from the sale of common shares by its sole shareholder. Hindalco will own about 92.5 percent stake in the company after the IPO.

Also Read: Hindalco subsidiary Novelis files registration statement with SEC for upcoming IPO

Ahead of the announcement, Hindalco shares closed 0.4 percent higher at Rs 680.55 on the BSE on May 28. In the last one year, the stock has rallied over 61 percent, outperforming the benchmark Nifty 50 which has risen 23 percent during this period.