Hindalco Stock Jumps 2% As Novelis IPO Filing Gets Public
Aditya Birla Group's Hindalco Industries makes public it files for an IPO for its aluminium manufacturer arm, Novelis in the US on Monday
The stock of Hindalco Industries surged around 2 per cent in the Tuesday trading after its US-based firm, Novelis filed its registration for initial public offering (IPO) to the New York Stock Exchange (NYSE).
The stock traded at Rs 646 in the afternoon session with 2 per cent on the National Stock Exchange (NSE).
The Indian conglomerate, Aditya Birla Group's Hindalco Industries made public it filed for an IPO for its aluminium manufacturer arm, Novelis in the US on Monday.
The company is proceeding with the listing in the hopes of a "soft landing" for the economy, where inflation declines without a recession or significant job losses, during a period when the US IPO market is experiencing a resurgence this year following a two-year pause.
Novelis reported net sales of USD 16.21 billion in fiscal 2024, compared with USD 18.49 billion a year earlier. Net income in fiscal 2024 was USD 600 million, compared with USD 658 million.
Novelis reported a higher fourth-quarter core profit in May due to increased aluminium prices and robust demand. Analysts predicted that the company's earnings will continue to improve in the long run.
Novelis, which will go public on the New York Stock Exchange with the ticker "NVL," has rolling and recycling operations in North America, South America, Europe, and Asia.
Morgan Stanley, BofA Securities, and Citigroup Global Markets will be the lead managers to the issue.
