Hindalco Stock Plummets After Novelis Postpones IPO
Hindalco says "Novelis will continue to evaluate the timing of the offering in the future"
Stocks of Hindalco slumped in the Wednesday trading session after Hindalco postponed the initial public offering (IPO) of its aluminium products manufacturer subsidiary, Novelis due to market conditions.
The stock traded at Rs 639 with 1.47 per cent dip in the morning session on the National Stock Exchange (NSE).
Hindalco said in a statement, "Novelis will continue to evaluate the timing of the offering in the future," without providing any other information.
Novelis declared for its US IPO in the last month targeting to raise up to ISD 12.6 billion, Novelis the largest aluminium recycler in the world whose clientele includes Coca-Cola, Ford, and Jaguar Land Rover.
Hindalco intended to sell 45 million shares with a price band of USD 18 and USD 21 per share in order to raise as much as USD 945 million.
Novelis was acquired in 2007 by Mumbai-based Hindalco, a division of the Indian multinational conglomerate Aditya Birla Group.
