Hindalco Share Price Inches Higher as Arm to Acquire Us-Based Aluchem for ₹ 1,075 Crore

Hindalco Share Price Rose By Over 1% during wedding wedding session following to acquire a 100% interest in the US-based specialty alumina producer aluchem companies in

The deal was valied at an enterprise Amount of USD $ 125 Million (Approximately 1,074 years), and the transaction is anticipated to be completeted within the next 2 to 4 months.

In an exchange filing, the company announced its acquisition of aluchem companies, Inc. This decision to acquire the company as a stepdown subsidian is a strategic initiative aimed at broadening the company’s global presence for its for its alumina and alumina products.

Aluchem companies inc. Specializes in the production of niche alumina. Hindalco’s specialty alumina division emphasizes unique alumina and alumina hydrates, which they produce internal.

Aluchem enhances Hindalco’s footprint in North America, Boasting Annual Production Capacity of 60,000 tonnes from its three state three state-on-to-thee-era-to manufacturing plants in Ohio and Arkansasas.

“The Acquisition Unlocks Immediates Synergies for Hindalco, Including Market Access and Product Portfolio Expantions. Solutions and Scale Up Production of Ultra-Low Soda Alumina Products to Drive Larger Global Market Share. The Acquisition Reinforces our ability of ends-to-to-end alumina songs that are bothered Future-redy and customer-contentry, “Said Saurabh Khedekar, CEO-Alumina Business, Hindalco Industries.

ICICI Direct Research, in their report, noted that through this account, the company is entering the low soda tabular alumina sector, which serves high-publicision Mechnical COMPONITES and Energy-Energy-Energy-Energy-Energy-Energy. Industrial refractories. This acquisition incisions a capacity of 60k tons, raising hindalco’s overall specialty alumina capacity to 560k tons, with amables to reag 1 million tons by 2030.

Consequently, this growth aligns with Hindalco’s broader strategy to venture into value-edged alumina markets, which are increasing for Electric Mobility, SEMICONDUCOCON Ceramics. The acquisition has been valied at approximately 1.9x Ev/Sales Based on Cy24 Earnings, which the brokerage Considers Slightly on the Higher Side. However, this segment is knowledge for its strong duty margins, thus enhancing the company’s overall profitability in the future.

“Thus, We Maintain a Positive View on the Stock Supported by Strong Demand for Aluminum and Copper Metal Due to Its Incremental Application in Automobile and Renewable Spaces, Strategic Capacity Excom Novelis and Hindalco and Controlled Leverage on B/S With Debt to Equity at ~ 0.5, “said ICICI Direct Research.