(Bloomberg) -- Billionaire Kumar Mangalam Birla plans a US listing for Novelis Inc., the world’s largest maker of flat-rolled aluminum products used in everything from cars to soda cans.

Atlanta-based Novelis has submitted a draft registration statement with the Securities and Exchange Commission for a proposed initial public offering of its common shares, the company said. Stock will be offered by a unit of parent Hindalco Industries Ltd. and Novelis won’t receive any proceeds from the sale, it said. 

Hindalco purchased Novelis in a multibillion-dollar deal in 2007 and the US unit contributed to more than 60% of the Indian company’s revenue last financial year. Shares of Hindalco jumped as much as 5.2% in Mumbai on Wednesday.

The move comes a week after Novelis flagged a sharp escalation in capital expenditure costs for a new aluminum rolling and recycling plant in Alabama, which prompted several analysts to downgrade the Mumbai-based parent. The increased expenses could make it hard for Novelis to generate free cash flow during fiscal 2024-28, according to Bloomberg Intelligence.

Although the number of shares to be offered, and how the funds raised will be used, are unclear, a listing would be positive for Novelis, according to Nuvama Wealth Management. The process could take at least six months, analysts Ashish Kejriwal and Jyoti Singh said in a report.

Hindalco had net cash of about 34 billion rupees ($410 million) at the end of December and the proceeds of the sale could be used to grow inorganically, pay a one-time dividend or return capital to the parent company, according to Nuvama.

Novelis expects to complete the public offering after the SEC finishes its review process, subject to market and other conditions, the company said.

--With assistance from Ashutosh Joshi.

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