NAVA Limited’s board has approved a buyback proposal from its wholly-owned Singapore subsidiary, Nava Global Pte. Ltd. (NGPL). The buyback involves 99,20,635 equity securities at US$ 5.04 per security, totaling approximately US$ 50 million (Rs. 450 crore). NAVA will continue to hold 100% ownership and control of NGPL post-buyback.
Buyback Approval Details
The Board of Directors of NAVA Limited has approved the buyback of securities from Nava Global Pte. Ltd. (NGPL), the company’s wholly-owned subsidiary in Singapore, during its meeting held on January 5, 2026.
Financial Implications
The buyback involves 99,20,635 equity securities held by NAVA Ltd. in NGPL, which represents 3.97% of NGPL’s total share capital. The buyback price is set at US$ 5.04 per security, with the total consideration amounting to US$ 50 million, equivalent to approximately Rs. 450 crore, subject to exchange rate fluctuations.
Rationale and Impact
Post buyback, NAVA Ltd. will retain 100% ownership and control of NGPL and its downstream subsidiaries. This transaction is aimed at utilizing surplus cash within NGPL to benefit the parent company, NAVA Ltd.
Taxation and Valuation
The consideration received will be subject to long-term capital gains tax in the hands of NAVA Ltd., after deducting the historical cost of investment of Rs. 48.33 crores. NGPL has been valued at US$ 1.26 billion, based on an independent fair equity valuation.
Subsidiary’s Strategic Perspective
NAVA plans to receive US$ 50 Million from its Singapore Subsidiary. The Singapore Subsidiary is valued at US$1.26 Billion, and NAVA continues to hold 100% stake post buy-back.
According to Nava Ltd., NG, having considered its financial position, dividend distribution policy, capital commitments and cash flows, has decided to utilize the surplus cash to the extent of USD 50 Million for buyback of shares from the Company.
Buyback Objectives
The objectives of the buyback are to achieve part monetization of NAVA’s investment in NG, to foster efficient utilisation of accumulated free reserves of NG, and to augment liquidity to pursue new acquisitions and new/ongoing projects.
Source: BSE
