Nayara Energy presents an intriguing proposition for investors, particularly those looking to explore unlisted shares. With the company’s current market price (CMP) hovering at ₹700, the stock's future growth potential appears promising. Coupled with the potential for a share buyback at ₹731 and an acquisition scenario that could significantly enhance shareholder value, Nayara Energy is positioned for significant developments.
Current Market Price and Buyback Offer
CMP (Current Market Price): ₹700
Buyback Price: ₹731
Shares Offered for Buyback: 2,59,08,262 shares
Buyback Period: April 11, 2025 – May 7, 2025
Nayara Energy is currently offering a buyback to its minority shareholders, specifically those who have held shares since the company’s delisting in 2016. The buyback offer presents an exit opportunity at ₹731 per share, which is a premium to the current market price of ₹700. This buyback serves two primary purposes: it provides liquidity for long-standing investors and signals the company’s confidence in its future prospects by offering a premium for shares.
Nayara Energy's Growth Strategy for 2025: Expansion Plans & Financial Projections
Petrochemical Expansion: A High-Value Pivot
In line with its growth strategy, Nayara Energy has committed a massive ₹68,000 crore investment into expanding its petrochemical business. The company plans to develop a 1.5 MMTPA ethane cracker in Gujarat, a significant move aimed at capturing 8% of India’s polypropylene market.
Polypropylene, a versatile material used in plastics, adhesives, and rubber, is expected to see growing demand in the coming years. This pivot into petrochemicals allows Nayara Energy to diversify its business and reduce its dependence on traditional refining, positioning the company to capture higher-margin products. Successful execution of this plan could substantially boost the company’s profitability and market share.
Key Highlights:
As part of its broader commitment to sustainability, Nayara Energy is establishing two new ethanol plants. This initiative aligns with the Indian government’s 20% ethanol blending target, which is set to reduce the nation’s dependence on imported fuels while promoting biofuels.
This diversification into biofuels provides Nayara with an additional revenue stream and supports the company’s long-term vision of being an environmentally-conscious energy provider. Ethanol production could also be a hedge against volatile crude oil prices, offering more stability to the company’s financials.
Key Highlights:
In addition to its core refining and petrochemical businesses, Nayara Energy is aggressively expanding its retail fuel network. The company plans to add 400 new fuel stations by FY26, which will significantly bolster its footprint across India.
Moreover, Nayara Energy’s retail growth includes the introduction of non-fuel retail services, such as convenience stores and loyalty programs. The expansion into alternative fuels, such as CNG and EV charging stations, further positions Nayara to capture the growing demand for cleaner energy sources.
Key Highlights:
Buyback Price: Short-Term Outlook (₹731)
The buyback offer of ₹731 per share presents the most immediate target price for investors who are eligible. This price represents a premium to the CMP of ₹700 and offers a guaranteed return for investors who choose to tender their shares. Given that the buyback offer runs through May 7, 2025, shareholders will need to decide whether to sell their shares back to Nayara or hold for potential long-term gains.
Base Case Target Price: Successful Execution of Growth Strategy (₹900 - ₹1,100)
If Nayara Energy successfully executes its growth strategy, including the petrochemical expansion, retail network growth, and ethanol production, the company's valuation could increase significantly. The company’s shift to higher-margin products, combined with an expanded retail presence, could push its target price into the range of ₹900 - ₹1,100 by 2026.
One of the most significant potential catalysts for Nayara Energy’s valuation is the ongoing possibility of an acquisition. The sale of Rosneft’s stake in Nayara Energy could lead to an attractive takeover bid from a strategic investor. Potential bidders include large multinational oil companies or private equity firms looking to capitalize on India’s growing energy market.
If this acquisition scenario materializes, Nayara Energy’s unlisted shares could surge to ₹1,200 - ₹1,500+, driven by a premium offered by acquirers seeking control of a well-positioned energy asset in India.
is at a pivotal moment in its growth trajectory, with substantial investments in petrochemicals, ethanol, and retail network expansion. The buyback offer at ₹731 provides a short-term exit opportunity, while the company’s growth strategy and acquisition possibilities suggest long-term upside.
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