Hindalco jumps 4% as firm unveils capital allocation framework

The company expects to generate over $1-1.2 billion cash flow per annum post its normal working capital and maintenance capex

Shares of Hindalco, on Tuesday, rose nearly 4 per cent to hit an intra-day high of Rs 327.65 on the BSE after the firm announced plans to deleverage its balance sheet and came out with a capital allocation framework for growth Capex, debt reduction and shareholders’ returns.

"Allocation towards growth capex is considered at $2.5-3 billion over the next five years. It will be ensured that all new investments are in line with the strategic intent of the company and the return on such investments is well above the cost of capital. The company has no large inorganic growth plans