Pavna Industries Limited has submitted its monitoring agency report for the quarter ended September 30, 2025, revealing no deviation in the utilization of funds from its Rs. 210.70 crore preferential issue of equity shares and fully convertible warrants. The report, prepared by CARE Ratings Limited, confirms adherence to the stated objectives with no range of deviation in fund utilization.

Issue Details and Fund Allocation

Pavna Industries issued 17,72,200 preferential equity shares at Rs. 505 per share and 24,00,000 warrants at the same price. As of the report date, the company has received Rs. 119.80 crore from the total issue proceeds, comprising:

• Rs. 89.50 crore from preferential equity shares
• Rs. 30.30 crore (25% of warrant value) from warrant holders

The remaining 75% from warrant holders, amounting to Rs. 90.90 crore, is expected to be received in tranches within 18 months from the allotment date.

The funds are allocated as follows:

Fund Utilization Status

According to the monitoring agency report:

1. Working capital requirements: The entire allocated amount of Rs. 81.50 crore has been utilized.
2. General corporate purposes: Rs. 38.30 crore out of the allocated Rs. 50.00 crore has been utilized.
3. Strategic acquisitions: No funds have been utilized yet from the allocated Rs. 78.92 crore.
4. Issue-related expenses: Although incurred, the expenses are yet to be reimbursed from the monitoring account.

The company has utilized a total of Rs. 119.81 crore, which includes Rs. 119.80 crore from the issue proceeds and Rs. 0.01 crore from interest income on fixed deposits.

Implementation Timeline

The report indicates no delays in the implementation of objectives:

• Issue-related expenses: Already incurred (reimbursement pending)
• Working capital requirements: Completed (deadline: August 2026)
• General corporate purposes: Ongoing (deadline: August 2026)
• Strategic acquisitions: Ongoing (deadline: August 2026)

Market Performance

As of October 22, 2025, Pavna Industries' share price stood at Rs. 36.74 per share, following a stock split effective from September 1, 2025. This compares to the warrant conversion price of Rs. 50.50 per share (post-split equivalent).

The monitoring agency report provides transparency on the utilization of funds raised through the preferential issue, demonstrating Pavna Industries' commitment to its stated objectives and compliance with regulatory requirements.

Pavna Industries Limited , a prominent player in the automotive components sector, has taken a significant step towards diversifying its product portfolio. The company announced the incorporation of a new joint venture subsidiary, PAVNA SMC Private Limited, in partnership with Smartchip Microelectronics Corp.

Key Details of the Joint Venture

Business Focus

The newly formed subsidiary aims to manufacture electronic components for various industries, including:

• Automobile industry (ICE and EV sectors)
• Hardware for cupboard/door locks in residential/commercial industries
• Aerospace sector
• Medical sector

This strategic move aligns with Pavna Industries' commitment to innovation and expansion into high-growth areas of the automotive and related industries.

Regulatory Compliance

The incorporation of PAVNA SMC Private Limited has been approved by the Ministry of Corporate Affairs, with the Certificate of Incorporation issued on November 5, 2025. This development has been duly reported to the stock exchanges in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Management's Perspective

While specific comments from the management regarding this joint venture were not provided, the move suggests Pavna Industries' intent to strengthen its position in the evolving automotive landscape, particularly in the growing electronic components segment.

Potential Impact

This joint venture could potentially enhance Pavna Industries' capabilities in the following areas:

1. Diversification of product offerings
2. Entry into the rapidly growing EV component market
3. Leveraging synergies with Smartchip Microelectronics Corp's expertise

As the automotive industry continues to evolve with a focus on electrification and advanced electronics, Pavna Industries' latest venture positions it to capitalize on these emerging opportunities.

Investors and industry observers will likely keep a close watch on how this new subsidiary contributes to Pavna Industries' growth trajectory and market position in the coming years.