Aditya Birla Group taps Citi, BofA Securities and Morgan Stanley for Novelis US IPO

The common shares are expected to be offered by Novelis’ sole shareholder (a unit of Hindalco), according to the official announcement.

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26 Aug, 2025 12:21

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The Aditya Birla Group has engaged three investment banks, namely Citi, BofA Securities and Morgan Stanley for the proposed US IPO of Novelis, a subsidiary of the group's flagship Hindalco, multiple industry sources in the know told Moneycontrol on the condition of anonymity.

Citi and BofA Securities declined to comment while the Aditya Birla Group and Morgan Stanley were unavailable for an immediate response.

The deal is arguably the first instance of an Indian conglomerate attempting a listing of its subsidiary in the US market. In 2019, Bharti Airtel's Africa subsidiary had listed on the London Stock Exchange and the Nigerian Stock Exchange.

On February 20, Novelis said it has confidentially submitted a draft registration statement with the US Securities and Exchange Commission (SEC) for a proposed initial public offering.

Since the filing is confidential in nature, issue size and other details are only shared with the regulator for now and not available to the public. In a similar manner, Tata Play (formerly Tata Sky) had become the first Indian firm to file papers confidentially for an IPO with Sebi in late 2022.

However, CNBC-TV18 reported earlier on February 21 that the Birla group plans to raise a billion dollars through the Novelis listing to comfortably meet capex requirements and expects a valuation of $15 billion for the firm.

The common shares are expected to be offered by Novelis’ sole shareholder (a unit of Hindalco Industries Ltd), according to the official announcement. Novelis will not receive any proceeds from the sale.

Novelis, a maker of flat-rolled aluminium products used in building products ranging from beverage cans to aeroplanes, expects to complete the public offering after the SEC completes its review process, subject to market and other conditions.

ALSO READ: Hindalco: Listing of Novelis in the offing