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Nicco Parks & Resorts has approved tendering 14,87,260 equity shares of its unlisted associate company NESL in a buyback offer at Rs.122.07 per share, for an aggregate value of approximately Rs.18.15 crore. The company's original average acquisition cost for these shares was Rs.718.46 per share, meaning the buyback price is significantly below cost. NESL currently contributes around 19.25% of Nicco Parks' consolidated net worth (Rs.1,962.55 lakh out of Rs.10,194.95 lakh) but contributes NIL to revenue as it is accounted for under the equity method. NESL is part of the promoter group of Nicco Parks. The tendering is being done on June 14, 2025, following Board and Audit Committee approvals.
The company is crystallising a large loss on its investment in NESL (selling at roughly 1/6th of acquisition cost), but will receive a cash inflow of about Rs.18.15 crore. Since NESL contributes no revenue and only 19.25% of net worth, the financial hit is primarily a one-time book loss, with limited impact on ongoing operations.