Hindalco Industries, part of the Aditya Birla Group, has decided to postpone the initial public offering (IPO) of its US subsidiary, Novelis. The proposed IPO was expected to raise approximately $1.08 billion, including the greenshoe option, but has been delayed due to unfavorable market conditions. In a statement, the company said, “Novelis will continue to evaluate the timing of the offering in the future,” without providing further details on the new timeline.
Hindalco, the sole selling shareholder, was projected to receive proceeds ranging from $810 million to $945 million. If the greenshoe option were to be exercised, the estimated proceeds would increase to between $931.5 million and $1.08 billion. The equity valuation of Novelis was estimated to be between $10.8 billion and $12.6 billion, while the enterprise value of the company was estimated at $17 billion.
The postponement highlights the challenges companies face amid volatile market conditions, impacting their strategic financial decisions. Novelis, known for its advanced aluminum products and solutions, will continue to monitor the market to identify a more favorable window for the IPO.
