Main Disclosure – Disinvestment Details

Target Entity

Swapnil Switches Private Limited (SSPL)

Percentage Stake Disinvested

50.74% stake (3,09,001 Equity shares) - Entire holding

Post-Transaction Holding

0% - Swapnil Switches Private Limited ceased to be a direct subsidiary of the Company effective October 9, 2026

Counterparty/Buyer

The stake was sold to three parties:

  • Mrs. Asha Jain (1,03,001 Equity shares)
  • Mrs. Priya Jain (1,03,000 Equity shares)
  • PJ Wealth Management and Consultant Private Limited (1,03,000 Equity shares)

Mode of Consideration

Cash

Valuation or Price Basis

As per valuation report and on arm's length basis

Consideration Amount

₹2,52,79,372 (Two Crore fifty-two lakh seventy-nine thousand three hundred seventy-two)

Rationale for Disinvestment

The proposed transaction is expected to:

  • Unlock value for shareholders
  • Optimize the Company's investment portfolio
  • Improve capital efficiency and liquidity
  • Enable redeployment of resources toward core business operations and strategic growth initiatives
  • Strengthen the Company's balance sheet

Impact on the Company

With effect from October 9, 2026, Swapnil Switches Private Limited ceased to be a direct subsidiary of the Company.

End Use of Proceeds

The proceeds from the sale shall be utilized by the Company in strengthening its core business and can be reinvested in higher-growth two-wheeler or three-wheeler auto industry opportunities.

Business Profile of Target Entity

Financial Contribution to Pavna Industries (Standalone basis) during last financial year:

  • Turnover/Revenue: ₹247.69 lakhs (0.87% contribution)
  • Total Income: ₹275.98 lakhs (0.96% contribution)
  • Net worth: ₹487.13 lakhs (2.48% contribution)

Related Party Status

Yes - The transaction falls within related party transactions.

Buyer Relationships:

  • Mrs. Asha Jain is the promoter of the Company
  • PJ Wealth Management and Consultant Private Limited and Mrs. Priya Jain belong to the Promoter Group of the Company

Transaction Details

Agreement Date: September 23, 2026

Completion Date: October 9, 2026

Approvals Required

The disinvestment was approved through:

  • Board Meeting dated August 24, 2026
  • Voting results of 32nd Annual General Meeting dated September 23, 2026

Other Updates

No other disclosures are present in the document.