Hindalco Shares Up 2% As Its Subsidiary Novelis Files Draft Papers For IPO In U.S.

Gaurang Shah from Geojit Financials remains optimistic about Hindalco shares, despite weaker results, on BTTV's 'Market Today' show. He believes that the IPO filing by Novelis could potentially offer a value-creation opportunity for investors. Novelis, headquartered in Atlanta and wholly owned by the Aditya Birla Group's Hindalco Industries, announced on Tuesday that it has confidentially submitted a draft registration statement to the United States Securities and Exchange Commission (SEC) for an initial public offering (IPO). If successful, Novelis will become one of the few subsidiaries of Indian companies listed separately on foreign exchanges. According to a statement by the company, common shares will be offered by Novelis' shareholders, with proceeds from the sale of common shares going to its sole shareholder.