1:10 Stock Split Ahead: Auto Stock Declares This Business Update After Confirming Sub-Division of Shares

Pavna Industries Limited is a leading manufacturer of high-grade automotive components, has acquired about 4.64 acres of land near the New Jewar Airport, Uttar Pradesh. This move solidifies a key part of the company's long-term goal to grow its infrastructure and production capacity in anticipation of demand that will continue to come from both domestic and international clients.

Mr. Swapnil Jain, Managing Director, Pavna Industries Ltd. said, "We are pleased to announce the acquisition of 4.64 acres of strategically located land near upcoming Jewar Airport, which is poised to become a key industrial and logistics hub in North India. This move underlines our proactive approach in planning for the future and ensuring that we are well-positioned to meet the evolving needs of our customers and partners."

"This acquisition supports our broader roadmap for growth, sustainability, and manufacturing excellence. The strategic location offers enhanced connectivity, access to skilled labor, and proximity to OEM clusters - all of which are integral to our expansion strategy. We look forward to leveraging this development to drive long-term stakeholder value and contribute to regional industrial progress," he further added.

Consistent with its expanding capacities, Pavna Industries acquired a celebrated milestone recently, as its subsidiary, Pavna Sunworld Autotech has started supplying oil pumps for Hero MotoCorp's ace models - Splendor and Glamour. Supplies are being made to all six HMCL manufacturing plants in India thereby reinforcing Marquee OEM relationship and focus on quality and delivery. Production is ramping up now and Colaiacovo said the company will be making 50,000 of these units per month within the next three to four months.

Continuing with the enhancement of its shareholder value, the board of directors of the company has recently approved a 1:10 stock split - every shareholder holding 1 equity share of face value Rs 10 each will receive 10 equity shares of face value Rs 1 each. The motive of this decision is to enhance the stock liquidity and to make the shares more affordable and available for retail investors. The effective date for the stock split will be announced following approval of the shareholders and is expected to be within a period of three months.

As of March 2025, promoters held a 61.50% stake, FIIs 6.18%, and the public 32.32%. The company, at the current market price of Rs 290 commands a market capitalisation of over Rs 580 crores and P/E 80x, maintains an ROE of 5% and ROCE of 10%.

Established in 1994 as "Pavna Locks Limited", Pavna Industries has emerged as a leading manufacturer of mission critical automotive components like ignition switches, fuel tank caps, and oil pumps for various categories of vehicles including passenger cars, two-wheelers, three-wheelers, and commercial and off-road vehicles. A highly prized client contentment list consisting of Bajaj, TVS, Honda, Mahindra, Royal Enfield, Eicher Motors and Ashok Leyland, etc. The firm also does heavy R&D in association with Sunworld Moto Industrial Co. and exports to Italy, Sri Lanka, Indonesia, Sudan, USA and Bangladesh.