Nava Share Price Jumps Over 2%; to Receive $50 Million as Buyback Proceeds from its Singapore Subsidiary

Nava Ltd has announced that it will receive $50 million, or about ₹450 crore, from a share buyback approved by its wholly owned Singapore subsidiary, Nava Global Pte Ltd.  

The proposal was cleared after the subsidiary assessed its surplus cash position, existing capital commitments and projected cash flows. The buyback will be funded using internal cash resources at Nava Global. 

Basis of Valuation 

The buyback consideration has been set following an independent fair equity valuation of Nava Global at $1.26 billion. Under the approved plan, the Singapore subsidiary will buy back 99,20,635 equity shares from Nava Ltd. This compares with a book value of $1.20 per share. 

Size and Structure of the Transaction 

The total amount payable to Nava Ltd is $50 million, calculated at an exchange rate of ₹90 per US dollar, subject to movement in foreign exchange rates.  

The shares being repurchased form part of Nava’s total holding of around 249,726,861 shares in the Singapore subsidiary. The transaction does not involve any issue of new shares. 

Tax Implications 

The historical cost of investment for the shares being bought back is ₹48.33 crore, computed on a FIFO basis. The difference between the consideration received and this cost will attract long-term capital gains tax for Nava Ltd, as per applicable tax rules. 

Shareholding Remains Unchanged 

Nava has said that its ownership in Nava Global will remain unchanged after the buyback. The company will continue to hold a 100% stake in the Singapore subsidiary. There will be no impact on voting rights or on control over Nava Global or its downstream subsidiaries. 

Nava Ltd Share Price Performance  

As of January 6, 2026, 10:38 am, Nava Ltd share price was trading at ₹597.55, a 2.45% increase from the previous closing price. 

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Conclusion 

The approved buyback will result in a cash inflow of about ₹450 crore for Nava Ltd. The transaction does not alter ownership, voting rights, or control of the Singapore subsidiary. 

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