Nava Limited announced that it will receive $50 million (approximately ₹450 crore) as buyback proceeds from its wholly owned Singapore subsidiary, Nava Global Pte Ltd, following board approval of the proposal.

Transaction Structure and Funding

The buyback will be funded through surplus cash at Nava Global, after considering the subsidiary's financial position, dividend policy, capital commitments and cash flows. Under the transaction structure, Nava Global will buy back 9.92 million equity shares from Nava Ltd at $5.04 per share, significantly above the book value of $1.20 per share.

Valuation and Ownership Impact

The buyback consideration has been determined based on an independent fair equity valuation of Nava Global at $1.26 billion. Post-transaction, Nava will continue to hold a 100% stake in the Singapore subsidiary, with no impact on voting rights or control. The total consideration of approximately ₹450 crore is calculated at an exchange rate of ₹90 per US dollar, subject to currency movements.

Strategic Benefits and Tax Implications

According to the company, the transaction enables partial monetisation of its investment in the Singapore subsidiary, efficient utilisation of accumulated free reserves at Nava Global, and enhanced liquidity to support new acquisitions as well as ongoing and future projects. The consideration received will be subject to long-term capital gains tax, after accounting for the historical cost of investment of ₹48.33 crore for the shares being bought back on a FIFO basis.

Management Commentary

Commenting on the development, Ashwin Devineni, Managing Director and Chief Executive Officer of Nava Ltd, said the transaction reflects the company's focus on disciplined capital allocation and long-term value creation. "By unlocking capital from a mature subsidiary and redeploying it in line with our strategic priorities, we are improving capital efficiency and optimising returns, while maintaining the financial strength and growth prospects of our businesses," Devineni stated.

Market Response

Post announcement, shares of Nava Limited closed at ₹580.10, up 1.16% on the day, after hitting an intraday high of ₹589.00. The positive market response reflects investor confidence in the company's capital allocation strategy and the value unlocking potential of the transaction.

NAVA Limited has informed the stock exchanges about a significant credit rating upgrade for its subsidiary, Nava Bharat Energy India Limited (NBEIL). The announcement, made on January 02, 2026, highlights improved creditworthiness of the subsidiary company.

Credit Rating Enhancement Details

CARE Ratings Ltd. has upgraded NBEIL's credit ratings across both long-term and short-term categories. The rating enhancement reflects the subsidiary's strengthened financial position and improved credit profile.

Supported Rating Withdrawal

Alongside the rating upgrades, CARE Ratings has withdrawn the supported rating for NBEIL. This decision stems from NAVA Limited's choice not to extend the Corporate Guarantee for its subsidiary. The withdrawal of supported rating indicates that NBEIL will now be evaluated independently without the backing of its parent company's guarantee.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. NAVA Limited communicated this development to both the National Stock Exchange of India Limited and BSE Limited simultaneously.

Company Leadership

The official communication was signed by VSN Raju, who serves as Company Secretary and Vice President of NAVA Limited. The digitally signed document was submitted to the exchanges on January 02, 2026, ensuring timely compliance with regulatory requirements.

This rating upgrade for NBEIL represents a positive development in the subsidiary's credit profile, while the withdrawal of supported rating indicates a move towards independent financial assessment without parental support.