March 14, 2017

Milbank Advises on Highly Successful Equity Capital Raising by Top Indian Metals and Mining Producer Hindalco

Share

Milbank, Tweed, Hadley & McCloy LLP advised Bank of America Merrill Lynch, Axis Capital, Citi, JM Financial and SBI Capital Markets, as book-running lead managers, in the qualified institutional placement by global integrated aluminum and copper producer Hindalco Industries Limited. Hindalco is part of leading Indian conglomerate Aditya Birla Group, and parent company of US-based Novelis, Inc., the world’s leading flat-rolled aluminum producer.

The US$500 million placement of 176.83 million shares was highly successful, pricing without a discount from its previous closing price on the Indian stock exchanges, with an order book that was three times oversubscribed. The transaction represents the first successful equity raise for Hindalco in more than seven years, and the largest non-bank QIP from India in over two years. The transaction launched after markets closed on March 2 and the books closed early on March 3.

The offer was done following a 139% increase in Hindalco’s share price over the last year. The funds will allow Hindalco to trim debt as well as provide ammunition for strategic acquisitions.

Capital Markets partner James Grandolfo, who led the Milbank transaction team, said: “This latest equity capital raising by Hindalco demonstrates the international capital markets confidence in the company as well as the Indian economy. Pricing a follow on equity offering at no discount to market after the stock had run up so significantly is a fantastic achievement. It was gratifying to support our clients, Bank of America Merrill Lynch, Axis Capital, Citi, JM Financial and SBI Capital Markets, and Hindalco in realizing their fund raising goals.”

Mr. Grandolfo, based in Hong Kong, was supported on the transaction by senior associate Kurt Sherwood and associate York Wu.