Nava To Buyback Shares Worth Rs 360 Crore, Stock Up 10%

Ferro-alloys manufacturer Nava Ltd. on Wednesday announced a buyback programme worth Rs 360 crore. The board approved the plan to repurchase 72 lakh shares at Rs 500 apiece, which represents 2.48% equity, according to an exchange filing.

The company has fixed Feb. 28, 2025, as the record date for the purpose of ascertaining the eligibility of shareholders for buyback, which will be managed by Anand Rathi Advisors Ltd. It will be conducted through a tender offer route.

Promoter entities, who currently hold 48.89% in Nava, will not participate in the proposed buyback.

Foreign institutions hold 12.31% stake, mutual funds 0.17%, and retail investors 32.99%.

According to SEBI norms, 15% of the tender offer is reserved for the small shareholder category — resident individuals holding nominal share capital up to Rs 2 lakh. The Nava buyback acceptance ratio for the retail category comes at 4.59%.

For rest of the minority shareholder category, which includes institutional investors, the acceptance ratio will be 12.08%.

Nava Share Price Rises

Nava's share price advanced over 10% intraday to Rs 417.55 apiece. The scrip was trading 9.12% higher by 12:35 a.m. The benchmark NSE Nifty 50 was up 0.08%.

The stock has fallen 20% in the last 12 months and 58% on a year-to-date basis. Total traded volume so far in the day stood at 2.9 times its 30-day average. The relative strength index was at 46.