Shares of India's biggest aluminium manufacturer, Hindalco, soared over 4 per cent in trade on Wednesday (February 21), snapping a two-day losing streak on BSE. The uptrend in the stock came after the company's US-based subsidiary Novelis Inc. submitted a draft registration statement with the Securities and Exchange Commission (“SEC”) proposing an initial public offering (IPO).

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At around 10:25 a.m., shares of Hindalco traded 1.87 per cent or Rs 9.55, higher at Rs 521.35 apiece. The market capitalisation of the company at around the same time stood at Rs 1,17,158.63 crore.

"Novelis Inc., a leading sustainable aluminum solutions provider and the world leader in aluminum rolling and recycling, today announced that it has confidentially submitted a draft registration statement on Form F-1 with the Securities and Exchange Commission (the “SEC”) relating to the proposed initial public offering of its common shares," the regulatory filing read. 

How did Hindalco perform in Q3? 

Aditya Birla Group flagship Hindalco Industries reported a 71 per cent year-on-year (YoY) rise in consolidated net profit at Rs 2,331 crore in the December quarter.

Consolidated revenue fell 0.6 per cent YoY to Rs 52,808 crore, the company said in an exchange filing on February 13. 

The aluminium upstream business' EBITDA rose 54 per cent from the year-ago period, supported by stable operations and lower raw material costs, “which keeps us positioned in the first quartile of the global cost curve" he said. The EBITDA came in at Rs 2,443 crore against Rs 1,591 crore in the year-ago quarter.

Hindalco share price: Past performance 

In a year, shares of Hindalco have risen over 20 per cent against Nifty 50's rise of over 24 per cent.

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