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Hindalco's Novelis Plans $1 Billion US IPO with Bank of America and Citigroup

Hindalco's Novelis enlists BofA, Citi for US IPO, aiming to raise $1 billion.

By Alex P. Chase

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2/21, 04:35 EST

Key Takeaway

  • Novelis Inc., owned by Hindalco, plans a US IPO managed by Bank of America and Citigroup, aiming to raise $1 billion.
  • The IPO marks a significant move for Hindalco, with Novelis contributing over 60% to its revenue last year.
  • Details on the bank lineup and fundraising size are pending, highlighting ongoing strategic preparations.

IPO Announcement

Novelis Inc., an American aluminum products maker owned by Hindalco Industries Ltd., has taken a significant step towards its US initial public offering (IPO). The Atlanta-based company has enlisted Bank of America Corp. and Citigroup Inc. to manage the share sale, with ongoing deliberations possibly leading to the addition of more banks. Novelis filed confidentially for its listing with the US regulator, with all shares to be offered by Hindalco, the parent company.

Fundraising Plans

Hindalco is reportedly aiming to raise around $1 billion through the IPO, as per CNBC-TV18 sources. This move comes after Hindalco's acquisition of Novelis in 2007, a deal that saw the US unit contribute over 60% of the Indian company's revenue in the last financial year. However, specific details regarding the bank lineup and fundraising size have not been disclosed.

Bank Responses

Representatives for Bank of America and Citigroup declined to comment on the matter, while a representative for Hindalco has yet to respond to requests for comment. The selection of these prominent banks for the IPO underlines the strategic importance and potential value of Novelis in the market.