Pavna Industries Ltd held a groundbreaking ceremony to officially commence construction of its new manufacturing facility in Hosur, Tamil Nadu, marking the automotive components manufacturer's strategic expansion into southern India. The company has committed ₹50.00 crore for the first phase of this significant investment.

Project Details and Timeline

The new facility represents a major milestone in Pavna Industries' growth strategy, with operations expected to commence in 2026. The plant will initially focus on supplying critical automotive components to original equipment manufacturers operating in the southern Indian market.

Strategic Positioning

Managing Director Swapnil Jain explained the rationale behind selecting Hosur as the location for this expansion. The site was strategically chosen for its proximity to key original equipment manufacturer customers in southern India. Jain emphasized that this expansion aims to improve operational efficiency, strengthen logistics capabilities, and contribute to local economic development in the region.

Company Profile and Operations

Pavna Industries manufactures automotive components across multiple vehicle categories, including passenger vehicles, two-wheelers, three-wheelers, commercial vehicles, and off-road vehicles. The company currently operates manufacturing plants in three locations: Aligarh, Aurangabad, and Pantnagar.

The company's diverse product portfolio includes:

• Ignition switches
• Fuel tank caps
• Latches and auto locks
• Oil pumps
• Throttle bodies
• Casting components

Customer Base and Market Reach

Pavna Industries serves major automotive manufacturers including Bajaj, Honda, TVS, Mahindra, Royal Enfield, Ashok Leyland, and Eicher Motors. Beyond the domestic market, the company maintains an international presence with exports to Italy, Sri Lanka, Indonesia, Sudan, the United States, and Bangladesh.

Incorporated in 1994 as Pavna Locks Ltd, the company has evolved into a comprehensive automotive components manufacturer. The shares of Pavna Industries Ltd ended trading at ₹19.40, declining by ₹1.03 or 5.04 percent during the session.

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.