Novelis Inc: Novelis Inc, the American subsidiary of Hindalco Industries of Aditya Birla Group, has applied for an IPO. The company has submitted the IPO documents to the Securities and Exchange Commission (SEC) of America. After launching the IPO, Novelis will join the list of those few Indian companies whose subsidiaries are listed on foreign markets.
Novelis Inc submitted IPO papers
Atlanta-based Novelis Inc. informed about the submission of IPO papers on Tuesday. The company said that Novelis shareholders will issue common shares for the IPO. The company will not get anything from their sale. The company has not yet told how much stake will be made available in the market through IPO. After the SEC reviews the papers, the final decision on the IPO will be taken after considering the market situation and other things.
Hindalco Industries shares jumped
Novelis Inc. informed about this decision after the closure of the Indian stock market. After the market opened on Wednesday morning, shares of Hindalco Industries opened with a green mark. The shares of the company were trading at Rs 523.15. The company's shares closed at Rs 511 on Tuesday evening. The total market value of Hindalco Industries has crossed Rs 1.15 trillion.
Bought Novelis Inc for 6 billion dollars
Hindalco Industries bought Novelis Inc. in 2007 for $6 billion. This is included in the major foreign acquisitions made by an Indian company. Later in the year 2020, Novelis acquired American company Aleris Corp for $2.8 billion. The market value of Novelis Inc. is estimated at approximately $9.7 billion. This decision of Aditya Birla Group has also got the support of market experts. He says that this decision will further strengthen the confidence of investors in Hindalco shares.
Read this also
Get more latest business news updates