Hindalco shares trim most of sharp early gains on profit-booking

Shares of Hindalco on Wednesday trimmed most of their sharp early gains after advancing nearly 9 per cent during the day largely on profit-booking. The scrip, which jumped 8.91 per cent to Rs 123.95 during the day, gave up most of its gains at the fag-end of the trade and closed at Rs 115.05, up 1.10 per cent on the BSE. On the NSE, it closed with a gain of 1.49 per cent to Rs 115.50 after climbing 8.96 per cent to Rs 124 during the trade.

The Aditya Birla Group flagship Hindalco has further cemented its position as the world's largest producer of value-added aluminium products with the completion of the USD 2.8 billion acquisition of Aleris by its wholly-owned US subsidiary Novelis Inc. The acquisition of the US-based rolled products major Aleris Corporation positions Hindalco as one of the world's largest aluminium companies, with a global footprint spanning 49 manufacturing facilities in North America, Europe and Asia, the group said in a statement.

The deal, closed at an enterprise value of USD 2.8 billion, offers Hindalco potential synergy benefits of USD 150 million on a recurring basis and also marks Novelis' entry into the high-end aerospace segment. It also offers Hindalco a large foothold into the Chinese fully integrated metal value-chain as Aleris runs a facility in Zhenjiang.

Satish Pai, the managing director of Hindalco, said beyond the many strategic benefits, the deal will generate around USD 150 million in synergies and creates a strong financial profile..

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