Nava to receive ₹450 crore as Singapore arm approves share buyback

Nava Ltd on Monday announced that it will receive $50 million (around ₹450 crore) as buyback proceeds from its wholly owned Singapore subsidiary, Nava Global Pte Ltd, following the acceptance of the proposal

by its board.

The buyback will be funded through surplus cash at Nava Global, after considering its financial position, dividend policy, capital commitments and cash flows. Post the transaction, Nava will continue to hold a 100% stake in the Singapore subsidiary, with no impact on voting rights or control.

The buyback consideration has been determined based on an independent fair equity valuation of Nava Global at $1.26 billion. Under the transaction, Nava Global will buy back 9.92 million equity shares from Nava Ltd at a price of $5.04 per share, compared with a book value of $1.20 per share.

The total consideration payable to Nava Ltd amounts to $50 million, equivalent to approximately ₹450 crore, calculated at an exchange rate of ₹90 per US dollar, subject to currency movements.

According to the company, the transaction enables partial monetisation of its investment in the Singapore subsidiary, efficient utilisation of accumulated free reserves at Nava Global, and enhanced liquidity to support new acquisitions as well as ongoing and future projects.

The consideration received, after accounting for the historical cost of investment of ₹48.33 crore for the shares being bought back (computed on a FIFO basis), will be subject to long-term capital gains tax in the hands of Nava Ltd.

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Commenting on the development, Ashwin Devineni, Managing Director and Chief Executive Officer of Nava Ltd, said the transaction reflects the company’s focus on disciplined capital allocation and long-term value creation.

“By unlocking capital from a mature subsidiary and redeploying it in line with our strategic priorities, we are improving capital efficiency and optimising returns, while maintaining the financial strength and growth prospects of our businesses,” Devineni said.

Post announcement, shares of Nava Limited closed at ₹580.10, up 1.16% today on NSE, after hitting an intraday high of ₹589.00.