Hindalco share price falls 6% after subsidiary Novelis postpones IPO citing market conditions

  • Novelis IPO price band was set at $18 to $21 per share. The company had planned to raise between $810 million and $945 million from the offer, Hindalco Industries had announced last week.

Livemint
Updated5 Jun 2024, 09:25 AM IST
Novelis will continue to evaluate the timing of the offering in the future.
Novelis will continue to evaluate the timing of the offering in the future.

Hindalco Industries share price declined nearly 6% in early trade on Wednesday after its US  subsidiary Novelis Inc postponed its initial public offering (IPO) due to market conditions. Hindalco shares fell as much as 5.94% to 608.40 apiece on the BSE.

The company will continue to evaluate the timing of the offering in the future, Novelis said. 

The company had planned to raise between $810 million and $945 million from the offer. Novelis IPO price band was set at $18 to $21 per share, Hindalco Industries had announced last week. 

Read here: Novelis IPO: US subsidiary of Hindalco Industries declares price band at $18 to $21 per share

With the green shoe option available to the US primary market investors, the net proceeds from Novelis IPO were estimated to be between $931.5 million and $1.08 million.

The company’s sole shareholder AV Minerals (Netherlands) NV, another subsidiary of Hindalco Industries,was set to offload 45 million Novelis shares in the IPO. After a successful listing of Novelis shares, Hindalco Industries would have owned 555 million Novelis shares or 92.50% stake of its US subsidiary. 

Novelis IPO was slated to be the biggest by an Indian company in the US.

Novelis, the world’s largest recycler of aluminum, whose customers include Coca-Cola, Ford and Jaguar LandRover, was targeting a valuation of up to $12.6 billion in its US IPO.

Aditya Birla Group company Hindalco had acquired Novelis in 2007. 

At 9:25 am, Hindalco shares were trading 5.54% lower at 611.00 apiece on the BSE.

Catch Stock Market Live Updates here

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.MoreLess
First Published:5 Jun 2024, 09:25 AM IST
HomeCompaniesNewsHindalco share price falls 6% after subsidiary Novelis postpones IPO citing market conditions

Most Active Stocks

Tata Steel

172.30
03:59 PM | 8 JUL 2024
-2.45 (-1.4%)

Oil & Natural Gas Corporation

299.25
03:59 PM | 8 JUL 2024
11.05 (3.83%)

Bharat Electronics

334.15
03:48 PM | 8 JUL 2024
10.15 (3.13%)

Indian Oil Corporation

170.15
03:59 PM | 8 JUL 2024
-1 (-0.58%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

Fertilizers & Chemicals Travan

1,115.80
03:51 PM | 8 JUL 2024
98.65 (9.7%)

One 97 Communications

472.05
03:59 PM | 8 JUL 2024
35.45 (8.12%)

Indian Railway Finance Corporation

202.10
03:58 PM | 8 JUL 2024
13.8 (7.33%)

IRCON International

326.90
03:56 PM | 8 JUL 2024
19.15 (6.22%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K
    Bangalore
    74,093.0073.00
    Chennai
    74,819.000.00
    Delhi
    74,819.00290.00
    Kolkata
    74,674.00-145.00

    Fuel Price

    • Petrol
    • Diesel
    Bangalore
    102.86/L0.00
    Chennai
    100.75/L-0.17
    Kolkata
    104.95/L0.00
    New Delhi
    94.72/L0.00
    OPEN IN APP
    HomeMarketsCibilPremiumMint Shorts