Nava Limited Buyback 2025: A Value Exit Opportunity for Shareholders

Nava Limited Buyback 2025 offers a great opportunity for exit by shareholders at a premium price. The initiative is in line with Nava Limited's focus on providing sustainable value to stakeholders.

Nava Limited Buyback 2025: A Value Exit Opportunity for Shareholders

Nava Limited is a multinational diversified company with headquarters in Hyderabad, India. The company operates businesses across Asia and Africa. Starting in 1972 with one Ferro Silicon smelter in Telangana, India, the company has diversified into various industries such as:

Varied Business Portfolio

Metals: Producing high-grade manganese alloys for both domestic and foreign markets.

Energy: Generation of power using coal, biomass, and renewable energies.

Mining: Direct participation in coal mining operations in Zambia.

Agribusiness: Investment in avocado and sugarcane plantations in Zambia.

Emerging Businesses: Investigating opportunities in healthcare and other areas.

Global Presence

Nava Limited has grown its presence in India, Zambia, and Côte d'Ivoire, expanding into industries from metals to healthcare.

Leadership and Sustainability

Under the guidance of CEO Ashwin Devineni, Nava remains focused on sustainable growth and shareholder value creation, driven by its long-term perspective.

Type of Buyback: Tender Offer

Record Date for Buyback: February 28, 2025

Offer Amount of Buyback: ₹360 Crores

Date of Board Meeting Approval: February 19, 2025

Date of Public Announcement: February 19, 2025

Size of Buyback Offer: 2.48% of the total equity

Buyback Shares: 72,00,000 equity shares

Face Value (FV): ₹1 per share

Price of Buyback: ₹500 per share

Details of Nava Limited Buyback

Nava Limited has floated a buyback of 72,00,000 of its equity shares, which stands at 2.48% of its total paid-up share capital, at ₹500 per share, totaling ₹360 crores.

Financial Performance of Nava Limited

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 (₹)

11.22

13.53

17.84

42.1

43.28

Dividend Payout %

7%

9%

17%

7%

5%

With consistent revenue growth and a strong operating margin, Nava Limited has demonstrated a stable financial performance over the years.

How to Invest in the Buyback?

Eligibility: Shareholders should have Nava Limited shares in Demat or physical form as of the record date i.e. 28th February 2025.

Participation Process: After you have shares in Demat, you can offer them in the buyback period (update dates) by selling them via your broker on NSE or BSE.

Payment & Refunds: Following the acceptance of buyback, payment will be made, and unaccepted shares will be credited to your Demat account.

Possible Profit through the Buyback

Assuming an investor purchases 486 shares at a current market price (CMP) of ₹411 by investing ₹1,99,746.

Acceptance Ratio

33%

50%

75%

100%

Shares Bought Back

160

243

364

486

Buyback Profit (₹)

14,240

21,627

32,396

43,254

Profit %

7.13%

10.83%

16.22%

21.65%

The higher the acceptance ratio, the higher the potential profit, making this buyback a lucrative opportunity for investors.

The Nava Limited Buyback 2025 presents the shareholders with the chance to sell at a premium price and earn from the excellent financials of the company. With Nava's diversified business model, global reach, and focus on sustainability, this buyback is likely to be a good opportunity for current shareholders to reap their highest returns.

If you are a shareholder, make sure you are qualified and act in time to make the most out of this rewarding buyback scheme!

Source: investorzone.com

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