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Novelis files draft IPO papers in the US – IPO News

Novelis Inc, the US subsidiary of Hindalco Industries, said on Tuesday that it has filed a draft registration statement with the US Securities and Exchange Commission (SEC) for a proposed initial public offering (IPO).

The aluminum maker filed the registration statement confidentially, it said in a regulatory update. The shares are expected to be offered by Novelis' sole shareholder. The company is a wholly owned subsidiary of Hindalco.

Novelis will not receive any proceeds from the sale of common stock by its sole shareholder. It expects to complete the public offering after the SEC completes its review process, subject to market and other conditions, it added, without providing further details.

Last week, Novelis said it will spend $4.1 billion on the integrated rolling and recycling plant at Bay Minette in the US, 64% more than the previously budgeted $2.7 billion to $2.8 billion.

In a post-earnings conference call, Hindalco CEO Satish Pai said about 80% of the increase was from work in the construction sector, as this increase was roughly estimated. However, the cost of the 600,000 tonne per annum project will drop significantly from $7,000 per tonne to $1,500 to $2,500 per tonne in the second phase, when capacity is doubled, he added.

Novelis, an Atlanta-based company, had reported net income (attributable to its common shareholder) of $121 million for the third quarter of this fiscal year, a significant increase from $12 million in the same period last year. Net profit excluding items was $174 million, up 81%, while Ebitda rose 33% to $454 million.

Hindalco, on its part, reported a 71.1% rise in consolidated net profit at Rs 2,331 crore in the third quarter, driven by strong performance from its aluminum and copper businesses. In comparison, the Aditya Birla Group company had reported a net profit of Rs 1,362 crore.

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