Hindalco slips int red

Hindalco, like most shares in the market since yesterday, is not doing too well. The stock opened 2.6% lower and went down to an intraday low at Rs.608.40, fall of over 6%.

The reason for the fall, apart from the overall mood on the Street after the company said that Novelis has announced postponement of its IPO in the USA due to market conditions, saying that it will continue to evaluate the timing of the offer in the future.

This US subsidiary of Hindalco was to raise about $1.08 billion along with the greenshoe option.

The sole selling shareholder, Hindalco was to receive proceeds estimated in the range of $810 million- $945 million. The company’s equity valuation was estimated to be between $10.8 billion and $12.6 billion. The enterprise value of the company was estimated at $17 billion.