The shares of the leading automotive component manufacturer gained 10 percent to a 52-week high price of Rs 640.85 apiece after the company board approved raising funds through the issuance of the right issue.
On Wednesday, Pavna Industries Ltd shares closed at Rs 603.75 per share, up 3.63 percent from the previous close price on the National Stock Exchange, and the company has a market capitalization of Rs 735 crores.
According to the company’s exchange filing, the Pavna Industries board of directors approved the inter-alia raising of funds for an aggregate amount of up to Rs. 185 crores by way of issuance of Equity Shares on a rights basis to the eligible equity shareholders of the Company.
Pavna Industries’ shares have gained 95 percent in the last six months and delivered a multibagger return of 175 percent in a year. A shareholder investment of Rs 1 lakh in the company would be worth Rs 2.75 lakhs in a year.
The company’s revenues have decreased by 27 percent year on year from Rs 104.20 crore in Q2FY23 to Rs 76.16 crore in Q2FY24, while Net profit has increased by 90 percent from Rs 1.45 crore to Rs 2.75 crore
The Company is engaged in the business of manufacturing automotive parts, providing solutions for automobile applications, and serving automobile & other applications worldwide for Original Equipment Manufacturers (OEM) & providing automotive aftermarket solutions.
The company is the leading manufacturer of Automotive Components for the two & three-wheeler industry. The company’s marquee clients include Force Motors, Atul Auto, JBM group, Birla Power Solutions, John Deere, Ashok Leyland, and many others.
Pavna Industries has nine facilities in three locations in India and the company exports its products to countries like Italy, Sri Lanka, Indonesia, Sudan, Taiwan, Nepal, and Bangladesh.
Written by Omkar Chitnis
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