Novelis IPO: US subsidiary of Hindalco Industries declares price band at $18 to $21 per share
Novelis IPO: The initial public offer (IPO) of Novelis, with a fixed price band for its public issue, presents a promising opportunity. The US subsidiary of Hindalco Industries Ltd has set the Novelis IPO price band at $18 to $21 per share.
With the green shoe option available to the US primary market investors, the net proceeds from this public issue are estimated to be between $931.5 million and $1.08 million. Sole shareholders of the company, AV Minerals (Netherlands) NV and one more shareholder, are offloading 45 million Novelis shares in the upcoming IPO of the US primary market.
After a successful listing of Novelis shares, Hindalco Industries would own 555 million Novelis shares or 92.50 percent of the common shares of its US subsidiary. However, if the underwriters exercise the over allotment option in the green shoe option, then in that case Hindalco Industries' stake in the company would come at 91.40 percent.Also Read: Gold price jumps ahead of US GDP data release.
Opportunity to buy?After a period of dormancy, the IPO market is showing signs of revival. A robust stock market and economic resilience are encouraging companies to list their shares.
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