Novelis Inc has postponed its $945 million initial public offering (IPO) citing "market conditions’’.

The aluminium solutions provider added that it will continue to evaluate the timing of the offering in the future.

Novelis is an arm of Hindalco Industries, and the announcement initially led to Hindalco shares slumping around six per cent to a low of ₹608.40.

However, it rebounded strongly and finished at ₹694.80, marking a gain of 7.41 per cent or ₹47.95 over the last close.

Last month, Novelis Inc had filed papers with the US Securities and Exchange Commission for the share float to mobilise up to $945 million, with an estimated equity valuation of up to $12.6 billion.

The company had applied to list its common shares on the New York Stock Exchange under the symbol “NVL”.

In the proposed public issue, around 45 million shares would be sold by Novelis Inc’s sole shareholder AV Minerals (Netherlands) NV, a wholly-owned subsidiary of Hindalco. The company, therefore, will not receive any proceeds from the IPO.

At present, Hindalco owns 100 per cent of Novelis through AV Minerals.

Post-IPO, Hindalco will own around 92 per cent stake in Novelis. The IPO’s price per common share is estimated to be between $18 and $21.

Novelis also disclosed that the selling shareholder could go for in for a greenshoe option of an additional 6,750,000 common shares. If the greenshoe option is exercised, it is estimated that the proceeds will range from $931.5 million to $1.08 billion.

Morgan Stanley, BofA Securities and Citigroup were appointed as lead book-running managers for the proposed offering with Wells Fargo Securities, Deutsche Bank Securities and BMO Capital Markets,additional book-running managers.

This will be the second company from the Aditya Birla group to go for listing overseas after Birla Carbon (Thailand).

Novelis, which is a sustainable aluminium solutions provider and a major player in aluminium rolling and recycling, posted a turnover of $16.2 billion in 2023-24.