Nava Limited Buyback 2025

Nava Limited is a diversified multinational company headquartered in Hyderabad, India, with operations spanning Asia and Africa.

Key Highlights:

  1. Established in 1972: Nava began with a single Ferro Silicon smelter in Telangana, India, and has since expanded into various sectors.

  2. Diverse Business Portfolio: The company operates in multiple industries, including:

    • Metals: Manufacturing high-quality manganese alloys for domestic and international markets.
    • Energy: Engaging in power generation through coal, biomass, and other sources.
    • Mining: Active in coal mining, particularly in Zambia.
    • Agribusiness: Investing in ventures like avocado and sugarcane plantations in Zambia.
    • Emerging Businesses: Exploring sectors such as healthcare.
  3. Global Presence: Nava has established a significant footprint in countries like India, Zambia, and Côte d’Ivoire, operating in sectors from metals to healthcare.

  4. Leadership: The company is led by CEO Ashwin Devineni, under whose guidance Nava continues to pursue sustainable growth and value creation for stakeholders.

  5. Commitment to Sustainability: Nava emphasizes delivering sustainable value, guided by its core values and a long-term perspective in all its business endeavors

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Feb 28 2025
Buyback Offer Amount: ₹ 360 Cr.
Date of Board Meeting approving the proposal: Feb 19 2025
Date of Public Announcement: Feb 19 2025
Buyback Offer Size: 2.48%
Buyback Number of Shares: 72,00,000
FV: 1
Buyback Price: ₹ 500 Per Equity Share

Details of Buyback:

The proposal to buyback not exceeding 72,00,000 (Seventy-Two Lakh) equity shares of the Company (representing 2.48% of the total number of equity shares in the paid up share capital of the Company) at a price of  Rs. 500/- (Rupees Five Hundred Only) per equity share payable in cash for an aggregate consideration not exceeding Rs. 360,00,00,000 crores (Rupees Three Hundred and Sixty Crores only).

Salient financial parameters:

Particulars (In Cr) Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024
Sales 2,759 2,548 3,348 3,528 3,818
Expenses 1,573 1,483 2,029 1,959 2,087
Operating Profit 1,186 1,066 1,319 1,569 1,731
OPM % 43% 42% 39% 44% 45%
Other Income 12 250 211 400 242
Interest 319 348 338 397 275
Depreciation 289 300 295 306 319
Profit before tax 590 668 896 1,266 1,379
Tax % 10% 18% 36% 3% 9%
Net Profit 531 551 573 1,222 1,256
EPS in Rs 11.22 13.53 17.84 42.1 43.28
Dividend Payout % 7% 9% 17% 7% 5%

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of Nava Limited in Demat or physical form as on the record date [28/02/2025]. 2. Once you have shares in Demat, you can participate in the buyback process which is opening from [To be updated] by selling your shares through your broker on NSE or BSE 3. Then on [To be Updated], the payment will be given to you for accepted shares and unaccepted shares will be returned to your Demat account.

Profit from the buyback on the bases of acceptance Ratio:

Buy 486 Shares at CPM of Rs. 411 (2,00,000/500)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 199746 199746 199746 199746
No. of Shares Buyback 160 243 364 486
Buyback Profit 14240 21627 32396 43254
Profit% 7.13% 10.83% 16.22% 21.65%

25 Comments

    Hi,

    Meri salary income and income from other sources all zero no income hai . Stcg ltcg bhi 0 hai fir bhi tax lagega kya buyback me .

      You don’t have to pay income tax. Would have to file ITR to get refund on the Tax deducted on the buyback sum, which is treated as dividend income..

    SIS BUYBACK (MARCH 2025)

    BUYBACK PRICE: 404 per share
    CMP: 342
    SIZE: 2.57% of total shares

    S I S Board meeting on 25th March to consider Buyback. Last buyback was @ 550/ and A R was 37℅ or so.

      Due to Taxation on Deemed Dividend i.e. on buyback price many person ( Higher slab rate) will not participate hence AR will be more as compare to previous buyback

        By looking at the chart of SIS since inception, Its following at downward mountain pattern, right now we are at bottom. Good for short and not for long 🙂

    Expecting full 100% AR in retail.

    Retail holders on record date : 53000 approx.

    Total orders bids – 5833.

    Please answer my question if anyone knows it… Suppose I sell all my holding on 28 Feb as I eligible for buyback So I bought No of entitled share again and participate on buyback is it possible???

    Since the record date is 28th, it appears that the process will be completed within the current financial year itself. That’s another disadvantage from the Income tax perspective.

      Advantage if your tax bracket is less than 20 percent and you have stcg from share thus year. My case is like that

    Thanks Trinity.
    MG, its very bad system. It means irrespective of profit or loss taxes would need to be paid and that too on Slab rate which is 30% on the selling amount. It means even I have bought at same rate as Buyback, I would need to pay 33% of Rs 500/- This is crazy. May be its suitable for the accounts where there are no taxes to be paid. Else while its doesn’t make sense..

    Thanks for creating the page for Nava Buyback,
    Can someone kindly teach me the current income tax system for Buyback.
    I had bought Nava @200 around 2 years back. What would be the tax implication?

      Let us say 100 shares get accepted. Then you will have deemed dividend income of 50k, which will be taxed at the slab rate.

      Also, you will be able to claim a long term capital loss of 20K, which you can use to offset long term capital gains from other investments. If one doesn’t have enough long term capital gains to offset in the current year, the losses can be carried forward.

        Also, TDS of 10% would be deducted on the deemed dividend of 50K, for which you can claim credit while filing the ITR.

        is it Long Term Capital Loss? I was under impression that Short Term Capital Loss can also be considered. can you confirm?

          The OP clearly stated that he has held the shares for 2 years. In his case, it is a long term holding. If someone else has held them for less than an year till the date of sale, it would be a short-term holding.

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