Hindalco Arm Novelis Raises $750M From AV Minerals; Shares Surge 1.5%

Shares of Hindalco Industries Ltd surged 1.5% to touch a day’s high of Rs 879.40 on 30th December. This increase came after the company announced on Monday (29th December) that its wholly owned subsidiary, Novelis Inc., has entered into a subscription agreement. The agreement is with AV Minerals (Netherlands) N.V., the sole shareholder of Novelis and a wholly owned subsidiary of Hindalco.

Under the agreement, AV Minerals will purchase 50,00,000 common shares of Novelis at $150 per share. This adds up to a total of $750 million. The transaction has been filed with the US Securities and Exchange Commission via Form 8-K.

Hindalco’s Managing Director, Satish Pai, expects FY27 (2026–27) to be strong for Novelis. The company is targeting $500 per tonne EBITDA as operations recover from recent disruptions. Novelis’ Oswego mill, affected by a fire earlier in the year, restarted in early December. This boosts expectations for stronger Q4 results.

Pai noted that Novelis’ business remains steady. The Bay Minette project in the US is adding 600,000 tonnes of capacity (expandable to 1.2 million tonnes). The project is expected to drive future growth, especially as US import tariffs make local production advantageous.

Although the project’s costs rose due to US inflation, Pai said it will still deliver returns above the cost of capital.

At 11:49 AM, shares of Hindalco were trading 1.43% higher at Rs 877.40 on NSE.

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