Hindalco subsidiary Novelis files registration for $1.2 billion US IPO

According to a regulatory filing by Hindalco, Novelis's common shares are proposed to be offered by its sole shareholder, AV Minerals (Netherlands) NV, a fully-owned subsidiary of Hindalco. It is important to note that Novelis will not get any proceeds from the sale of common shares by its sole shareholder.

The company plans to list its common shares on the New York Stock Exchange under the ticker "NVL", the exchange filing said.

Novelis produces innovative aluminium products and solutions. It is the world's largest recycler of aluminium. The company’s products are used in aerospace, automotive, beverage packaging, and speciality industries.

The shares on offer and price band of the issue have not yet been determined. "Novelis expects to complete the public offering after the US SEC completes the review process," the company said.

According to news reports, Novelis intends to complete its IPO offering by June. The company is likely to start marketing the issue in about two weeks.

The Atlanta-based company is aiming to raise $1.2 billion through its IPO, with reports suggesting that the proposed valuation could be around $18 billion.

The lead book-running managers for the issue are Citigroup, BofA Securities and Morgan Stanley, while Deutsche Bank Securities, BMO Capital, and Wells Fargo Securities are additional book-running managers.

BNP Paribas, SMBC Nikko, Academy Securities, PNC Capital Markets LLC and Credit Agricole CIB will be acting as co-managers for the proposed IPO.