Nava Ltd: Smallcap co announces share buyback at 32% premium; stock up 13%

Nava Ltd share price: Nava Ltd will buyback 7.2 million shares at Rs 500 per share

Nava share price, Nava buyback news: Smallcap stock – Nava Ltd share price – soared 12.5 per cent on the BSE in Wednesday’s stock markets trade. Nava Ltd share hit an intraday high of Rs 426.05 per share, and was up 12 per cent (Rs 424 per share) at 1:50 PM. By comparison, the benchmark Sensex was volatile in trade today and was up 0.02 per cent at the time of writing this report.

 

Meanwhile, the surge in the smallcap stock came on the back of a share buyback news by the company.

 

The Board of Nava Ltd, at their meeting held today, February 19, 2025, has approved a share buyback plan by the company via tender offer route.

 

 

As per the company, Nava Ltd will buyback up to 72,00,000 fully paid-up equity shares of face value Re 1 each, representing up to 2.48 per cent of the total number of equity shares of the company, at a price of Rs 500 per equity share.

 

The share buyback will be worth up to Rs 360 crore, and will be equivalent to 9.87 per cent of the total paid-up equity capital and 5.78  per cent of free reserves.

 

“The Board has noted the intention of the Promoters and members of the Promoter Group of the company not to participate in the proposed Buy Back,” Nava Ltd said in a stock exchange filing today.

 

Further, Nava Ltd has fixed Friday, February 28, 2025, as the ‘Record Date’ for the purpose of ascertaining the eligibility of shareholders who would  be allowed to participate in the Buyback of equity shares.

 

Notably, the company’s share buyback price is 32.1 per cent higher than the stock’s last closing price on the BSE.

 

A share buyback is a process where a company buys back its own equity share from the shareholders at a specified price.

 

There are two types of buyback processes. First is the ‘Tender Offer’ route, under which the company proposes to buyback shares from the shareholders at a particular price (offer price). This is the price at which the shareholders can sell their shares to the company.

 

Second is the ‘Open Market’ route, under which the company buys its shares from sellers on the stock exchanges.

 

Nava Limited is a small-cap company, engaged in the businesses of metals, energy, mining, commercial agriculture, and healthcare.

 

During the December quarter of the current financial year (Q3FY25), Nava Ltd reported a consolidated revenue of Rs 878.1 crore, down 11.7 per cent year-on-year from Rs 995 crore.

 

The company’s Ebitda (earnings before interest, tax, depreciation, and amortisation) rose 2.2 per cent Y-o-Y to Rs 485.5 crore, while net profit shrank 24 per cent to Rs 353.3 crore.

 

Nava Ltd’s Q3 Ebitda margin, however, expanded 752 basis points to 55.3 per cent from 47.8 per cent Y-o-Y.

 

“Despite challenging market conditions, we have maintained profitability and enhanced operational efficiencies. Our continued focus on business expansion, cost optimisation, and strategic investments will drive long-term value creation for our stakeholders,” said Ashwin Devineni, chief executive officer of Nava Ltd.

 

Thus far in calendar year 2025, Nava Ltd share price has tumbled 23.3 per cent on the BSE as against a 2.7 per cent slide in the benchmark Sensex index.

 

Over the past one year, Nava Ltd share has, however, surged 46.5 per cent as against a 4 per cent rise in the benchmark Sensex index.

 

Nava Ltd hit a 52-week high of Rs 673.35 per share on September 18, 2024, and a 52-week low of Rs 218.5 per share on March 14, 2024.

 

Nava Ltd’s market capitalisation stands around Rs 12,300 crore. At present, Promoter and Promoter Group holds 48.89 per cent stake in the company, Mutual Funds hold 0.17 per cent stake, Foreign Investors (including NRIs, FIIs, etc) hold 12.31 per cent stake, and Others (including corporate bodies) hold 5.64 per cent stake.