Hindalco Industries Ltd.'s US subsidiary Novelis announced early on Wednesday its decision to postpone its $945 million initial public offering due to 'market conditions'.
"Novelis will continue to assess the timing of the offering in the future," it stated, without elaborating further.
Last week, Novelis had unveiled plans to sell 45 million shares, pricing them between $18 and $21 per share, in preparation for its debut on the New York Stock Exchange.
Following the IPO, Hindalco would retain 92.5% ownership of Novelis shares, with the latter not receiving any proceeds from the sale of common shares by its sole shareholder.
Hindalco acquired Novelis in 2007 for $6 billion. The decision to take Novelis public follows the company's announcement in February to bid for critical minerals exploration sites being auctioned by India, in line with its transition towards green energy.
The prospective IPO emerges as Hindalco seeks to capitalise on Novelis' position as the leading global producer of flat-rolled aluminium products used in automotive and beverage packaging industries.
Hindalco's shares resumed their downward trend on Tuesday following a brief respite, closing 6.7% lower at Rs 649.05, compared to the NSE Nifty 50's 5.9% decline.
Over the past 12 months, the stock has yielded a return of 19.3%. Among the 50 analysts tracked by Bloomberg, 29 advocate a 'Buy' rating, while 21 recommend a 'Hold'.
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