PAVNA INDUSTRIES LIMITED
Main Disclosure – Disinvestment Details
Target Entity: Pavna Auto Engineering Private Limited
Percentage Stake Disinvested: 50.74% (30,901 Equity shares) - entire stake
Post-Transaction Holding: 0% - Pavna Auto Engineering Private Limited ceased to be a direct subsidiary of the Company effective October 13, 2026
Counterparty/Buyer: Mrs. Priya Jain
Mode of Consideration: Cash
Valuation or Price Basis: The transaction was done on arm's length basis and as per valuation report
Consideration Received: ₹8,79,72,057 (Eight Crore Seventy-Nine Lakh Seventy-Two Thousand Fifty-Seven)
Rationale for Disinvestment:
- 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
End Use of Proceeds: The proceeds 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
Impact on the Company: Pavna Auto Engineering Private Limited contributed the following to the Company's standalone financials during the last financial year:
- Turnover/Revenue: ₹1533.95 lakhs (5.40%)
- Total Income: ₹1553.67 lakhs (5.42%)
- Net worth: ₹1778.90 lakhs (9.07%)
Business Profile of Target Entity: Auto engineering subsidiary
Related Party Status: Yes - Mrs. Priya Jain belongs to the Promoter Group of the Company
Transaction Classification: Related party transaction executed at arm's length basis
Approvals Required: The disinvestment was approved by the Board of Directors on August 24, 2026 and by shareholders at the 32nd Annual General Meeting on September 23, 2026
Timeline:
- Agreement for sale executed on September 23, 2026
- Transaction completed and shares transferred on October 13, 2026
Regulatory Compliance: The disclosure is made under Regulation 30 of SEBI Listing Regulations read with SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026
Other Updates
No other disclosures are present in the document.