Hindalco Industries will provide up to $250 million more in equity to its U.S.-based subsidiary Novelis, taking the total planned support to $1 billion. As per news reports, the decision comes after 2 fire incidents at the Oswego facility.
The additional funds are meant to cover working capital and cost-related requirements over the next 6 to 8 months.
The company had announced a $750 million infusion in November. The fresh amount will be added as the subsidiary deals with repair costs and temporary disruption to operations.
The Oswego fires are estimated to have a gross cash flow impact of $1.3-1.6 billion before insurance recoveries. Novelis expects to recover about 70-80% of the losses through insurance, though the timing of the payments is not certain.
So far, the company has received around $50 million from insurers. The equity infusion is intended to manage the gap between restoration spending and insurance receipts.
The earlier $750 million infusion was financed through debt raised by Hindalco’s Netherlands-based subsidiary, AV Minerals. The funding included a $250 million greenshoe option, which the company is now exercising.
With this step, the total equity support rises to $1 billion. A part of the funds will also go towards higher capital expenditure at the Bay Minette project.
The Oswego facility is operating in a limited manner. The hot mill remains shut following the incidents, while the cold mill and cash lines continue to run. Management expects the hot mill to restart around June, depending on restoration progress.
The plant supplies aluminium to several North American carmakers. Ford is the largest customer, especially for the F-150, while other clients include Toyota, Stellantis, Hyundai, BMW, Mercedes-Benz, Renault-Nissan and Volvo.
As of February 13, 2026, 10:17 am, Hindalco Industries share price was trading at ₹907.30, a 5.92% decrease from the previous closing price.
The additional equity will take Hindalco’s total support to Novelis to $1 billion. The funds are meant to meet near-term cash needs as restoration continues and insurance recoveries are processed.
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Published on: Feb 13, 2026, 11:33 AM IST
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