Hindalco Stands Firm on Novelis IPO Price

23 Aug 2024 , 02:32 PM

Hindalco Industries will float its US-based subsidiary Novelis only when it receives the necessary valuation, according to managing director Satish Pai.

“Our goal for this IPO was to achieve a premium valuation for Novelis.” I believe what was evident was that, given the market conditions at the time, we were unable to obtain that valuation,” Pai told analysts following the company’s most recent quarterly reports.

The Aditya Birla group metals powerhouse had announced Novelis’ initial public offering in February, but it was postponed in June due to market conditions.

“We didn’t do it for money, so we pulled it back.” We didn’t need it. We wanted to do it for the valuation,” Pai explained.

Hindalco was trying to sell up to 8.6% of Novelis, including a green shoe option, at a price range of $18 to $21 per share. This predicted an upper-end market value of $12.6 billion for the company, as well as an enterprise value to Ebitda ratio of more than 8 times.

Pai stated that Novelis will only be listed if the desired valuation is obtained. The company will reevaluate the listing plan at the proper time.

For feedback and suggestions, write to us at [e-mail]