Hindalco's arm Novelis files draft papers for US IPO
In the IPO, the common shares are expected to be offered by Novelis’ sole shareholder. Novelis will not receive any proceeds from the IPO and the public offering is expected to be completed after the SEC completes its review process.
By Akash Podishetti, ETMarkets.com | Updated:
ETMarkets.com
Hindalco's subsidiary Novelis Inc. has filed a confidential draft document with the Securities and Exchange Commission for an IPO in the US markets.
"Novelis Inc. announced that it has confidentially submitted a draft registration statement on Form F-1 with the Securities and Exchange Commission relating to the proposed initial public offering of its common shares," Hindalco said in a statement.
In the IPO, the common shares are expected to be offered by Novelis’ sole shareholder.
Novelis will not receive any proceeds from the IPO and the public offering is expected to be completed after the SEC completes its review process.
The sole shareolder participating in the IPO is A V Minerals (Netherlands) N V, a fully owned subsidiary of Hindalco Industries.
Novelis is an industry leader in aluminum, copper and metals. In the recent December quarter, its revenue fell 6% year-on-year to $3.9 billion, impacted by lower average aluminum prices.
Novelis reported an adjusted EBITDA of $454 million, up 33% year-on-year, driven by favourable metal benefit from recycling, higher pricing, and lower operating costs. Novelis’ adjusted EBITDA per tonne also increased 33% year-on-year at $499.
The strong operational performance was driven by favorable metal benefit from recycling, higher pricing, and lower operating costs compared to last year.
Total shipments of flat rolled products were flat at 910 Kt in the third quarter.
Having reported strong operating, Novelis expects adjusted EBITDA per tonne to return to a sustainable $525 level beginning this quarter, on season improvement in shipments and operating leverage benefits.
"Looking ahead, we believe there is opportunity for further margin expansion over time as we progress through our current period of disciplined, transformational capital investment to capture market growth,” Devinder Ahuja, executive vice president and CFO of Novelis had said.
On Tuesday, Novelis parent Hindalco's shares closed flat at Rs 512 on NSE.
"Novelis Inc. announced that it has confidentially submitted a draft registration statement on Form F-1 with the Securities and Exchange Commission relating to the proposed initial public offering of its common shares," Hindalco said in a statement.
In the IPO, the common shares are expected to be offered by Novelis’ sole shareholder.
Novelis will not receive any proceeds from the IPO and the public offering is expected to be completed after the SEC completes its review process.
The sole shareolder participating in the IPO is A V Minerals (Netherlands) N V, a fully owned subsidiary of Hindalco Industries.
Novelis is an industry leader in aluminum, copper and metals. In the recent December quarter, its revenue fell 6% year-on-year to $3.9 billion, impacted by lower average aluminum prices.
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Novelis reported an adjusted EBITDA of $454 million, up 33% year-on-year, driven by favourable metal benefit from recycling, higher pricing, and lower operating costs. Novelis’ adjusted EBITDA per tonne also increased 33% year-on-year at $499.
The strong operational performance was driven by favorable metal benefit from recycling, higher pricing, and lower operating costs compared to last year.
Total shipments of flat rolled products were flat at 910 Kt in the third quarter.
Having reported strong operating, Novelis expects adjusted EBITDA per tonne to return to a sustainable $525 level beginning this quarter, on season improvement in shipments and operating leverage benefits.
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"Looking ahead, we believe there is opportunity for further margin expansion over time as we progress through our current period of disciplined, transformational capital investment to capture market growth,” Devinder Ahuja, executive vice president and CFO of Novelis had said.
On Tuesday, Novelis parent Hindalco's shares closed flat at Rs 512 on NSE.
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