Pavna Industries Ltd: Proposed Rs 1,500 Crore Investment Limit and Rs 500 Crore Related Party Loan Facility
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The voting process is conducted exclusively through a remote e-voting facility provided by NSDL, which is scheduled to commence at 9:00 a.m. on Saturday, January 31, 2026 and conclude at 5:00 p.m. on Sunday, March 01, 2026.
Pavna Industries Ltd (NSE: PAVNAIND, BSE: 543915), a leading manufacturer of high-quality automotive components catering to diverse vehicle segments, including passenger vehicles, two-wheelers, three-wheelers, commercial vehicles and off-road vehicles, has issued a Postal Ballot notice to its members to seek approval for four key resolutions aimed at enhancing financial flexibility and supporting its group entities. The primary agenda includes authorising the Board to provide loans, guarantees, or securities to specific related companies—such as Pavna Aviation and Pavna Auto Engineering—up to an aggregate limit of Rs 500 crore under Section 185. Additionally, the company seeks to increase its overall investment and lending limit under Section 186 from Rs 750 crore to Rs 1,500 crore. The notice also details material modifications to existing related party transactions with Mrs Asha Jain (Chairperson), involving increases in building rent, trademark royalties and lease rents for the 2025-26 financial year, all to be conducted on an arm's length basis.
The voting process is conducted exclusively through a remote e-voting facility provided by NSDL, which is scheduled to commence at 9:00 a.m. on Saturday, January 31, 2026 and conclude at 5:00 p.m. on Sunday, March 01, 2026. Shareholders whose names appeared on the Register of Members as of the cut-off date, Friday, January 23, 2026, are eligible to participate. The results of the Postal Ballot, which will be scrutinised by Mr Shantanu Jain, are expected to be announced on or before Tuesday, March 03, 2026. Once approved by the requisite majority, these resolutions will be deemed passed as of the final day of the e-voting period and the results will be communicated to the NSE, BSE and other regulatory bodies.
Earlier, the company announced a strategic move to bolster its presence in the automotive electronics sector by approving an investment in its subsidiary, Pavna SMC Private Limited. In a Board meeting held on January 28, 2026, the company cleared the acquisition of an 80% stake for a cash consideration of Rs 4,00,000, with the transaction expected to conclude by March 31, 2026. This newly incorporated entity is set to focus on manufacturing electronic components for both Internal Combustion Engine (ICE) and Electric Vehicle (EV) segments, alongside catering to the Aerospace, medical and commercial hardware industries.
About the Company
Established on April 19, 1994, Pavna Industries Limited (formerly Pavna Locks Limited) boasts a 50-year legacy as a leader in the South Asian automotive sector. The company operates state-of-the-art manufacturing facilities in Aligarh, Aurangabad and Pantnagar, strategically positioned to serve major OEMs across the passenger, commercial and off-road vehicle segments. Their extensive product portfolio features high-quality components such as Ignition Switches, Fuel Tank Caps, Latches, Auto Locks, Switches, Oil Pumps, Throttle Bodies, Fuel Cocks and Casting Components.
Pavna maintains a strong global footprint, exporting to the U.S.A., Italy, Sri Lanka, Indonesia, Sudan and Bangladesh. The company’s commitment to innovation is driven by robust R&D and strategic partnerships like the Sunworld Moto Industrial Co joint venture. This excellence allows them to cater to prestigious clients, including Bajaj, Kawasaki, Honda, TVS, Mahindra, Escorts, Royal Enfield, Ashok Leyland, Mahindra Wheels, Eicher Motors, Tork Motors, Revolt and Mahindra Electric.
As of December 2025, Pavna Industries Limited maintains a stable ownership structure with promoters holding a 61.50 per cent stake, FIIs—led by Forbes AMC with 3.94 per cent—owning 6.06 per cent and public shareholders accounting for 32.79 per cent. With a market capitalisation exceeding Rs 200 crore, the shares have a PE of 60x, supported by an ROE of 5 per cent and an ROCE of 10 per cent.
Disclaimer: The article is for informational purposes only and not investment advice.