Company completes sale of entire 50.74% stake in auto engineering subsidiary; unit ceases to be a direct subsidiary
The company has completed the disinvestment and transfer of its entire 50.74% stake (30,901 equity shares) in Pavna Auto Engineering Private Limited (PAEPL) to Mrs. Priya Jain.
By ScoutQuest · · 2 min read
- Stake Divested
- 50.74% stake (30,901 equity shares) in Pavna Auto Engineering Private Limited (PAEPL)
- Consideration
- Rs. 8,79,72,057
- Cessation Date
- With effect from October 13, 2026, PAEPL ceased to be a direct subsidiary
What was announced
Pavna Industries Limited has completed the disinvestment and transfer of its entire 50.74% stake, comprising 30,901 equity shares, held in Pavna Auto Engineering Private Limited (PAEPL), a subsidiary company, to Mrs. Priya Jain. The transfer took place on October 13, 2026. With effect from that date, PAEPL ceased to be a direct subsidiary of the Company.
Who the buyer is
- Mrs. Priya Jain acquired 30,901 equity shares.
- Mrs. Priya Jain belongs to the Promoter Group of the Company.
- The transaction falls within related party transactions and, as stated, was done on an arm's length basis and as per a valuation report.
Money involved
The consideration for the sale/disposal is Rs. 8,79,72,057 (Eight Crore Seventy-Nine Lakh Seventy-Two Thousand Fifty-Seven). The agreement for sale was executed on 23rd September 2026, and the transfer was completed on October 13, 2026.
What PAEPL contributed
The update gives PAEPL's contribution to the Company's standalone financials for the last financial year:
- Turnover/Revenue: 1533.95 (₹ lakhs), being 5.40%
- Total Income: 1553.67 (₹ lakhs), being 5.42%
- Net worth: 1778.90 (₹ lakhs), being 9.07%
Rationale given by the company
The proposed transaction is expected to
- unlock value for shareholders
- optimise 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 from the sale of PAEPL shall be utilised by the Company in strengthening its core business and can be reinvested in higher-growth two-wheeler or three-wheeler auto industry opportunities, ultimately benefiting the shareholders.
Other points stated in the disclosure
The sale/disposal of the undertaking is stated to be outside a Scheme of Arrangement, and the slump sale disclosure is marked not applicable.
Reading this as an investor
The key facts to weigh are the size of the entity being sold compared with the Company's financials, the consideration received of Rs. 8,79,72,057, and the fact that the buyer belongs to the Promoter Group, making it a related party transaction carried out, as stated, on an arm's length basis. The Company's stated intent is to use the money in its core business and in two-wheeler or three-wheeler auto industry opportunities.
Also from Pavna Industries
Entire 50.74% stake in Swapnil Switches Private Limited transferred; ceases to be a subsidiary
9 Oct 2026
More numbers
- Stake in PAEPL disinvested and transferred50.74%
- Equity shares transferred30,901 Equity shares
- Consideration for the sale/disposalRs. 8,79,72,057
- PAEPL turnover/revenue (last financial year)1533.95 (₹ lakhs)
- PAEPL turnover/revenue as % of standalone financials5.40
- PAEPL total income (last financial year)1553.67 (₹ lakhs)
- PAEPL net worth (last financial year)1778.90 (₹ lakhs)
- PAEPL net worth as % of standalone financials9.07
Nothing here is a view, opinion or recommendation of ScoutQuest, its parent, directors or employees. ScoutQuest is a technology company: this page was assembled automatically from public sources using artificial intelligence, and may contain errors or omissions. Confirm everything against the original source before you act on it. Any use of this page is at your own risk, and neither ScoutQuest nor its parent, directors or employees accepts liability for it.