Hindalco’s Novelis IPO put on hold; enterprise value estimated at $17 billion 

Hindalco’s Novelis IPO - Hindalco's planned IPO for Novelis, with an estimated enterprise value of $17 billion, has been postponed due to unfavorable market conditions. Originally aiming to raise up to $945 million by offering 45 million shares at $18 to $21 each, Hindalco Industries, part of the Aditya Birla group, had intended to generate around $1.08 billion including the greenshoe option.

Hindalco’s Novelis IPO - The decision to delay the IPO was announced without elaborating on future timing. Hindalco, the sole selling shareholder, anticipated proceeds ranging from $810 million to $945 million, or potentially $931.5 million to $1.08 billion if the greenshoe option were exercised. The company's equity valuation was estimated between $10.8 billion and $12.6 billion.

 

Hindalco’s Novelis IPO put on hold; enterprise value estimated at $17 billion
Hindalco was looking to raise up to $945 million through the sale of 45 million shares at a price of $18 to $21 per share.
Hindalco Industries, an Aditya Birla group company, has postponed its proposed initial public offering of Novelis, a US subsidiary, to raise about $1.08 billion along with the greenshoe option.

The IPO was postponed due to adverse market conditions.

“Novelis will continue to evaluate the timing of the offering in the future,” the company said without providing further details.

The sole selling shareholder, Hindalco was to receive proceeds estimated in the range of $810 million- $945 million.

Assuming the green shoe option is exercised, the estimated proceeds are $931.5 million to $1.08 billion.

The company’s equity valuation was estimated to be between $10.8 billion and $12.6 billion.

The enterprise value of the company was estimated at $17 billion.