Entire 50.74% stake in Swapnil Switches Private Limited transferred; ceases to be a subsidiary

Pavna Industries has completed the disinvestment and transfer of its entire 50.74% stake in Swapnil Switches Private Limited, comprising 3,09,001 equity shares, to Mrs. Asha Jain.

Fri 9 Oct 2026

Consideration

Rs.2,52,79,372

Stake Transferred

entire 50.74% stake in Swapnil Switches Private Limited, comprising 3,09,001 equity shares

SSPL Contribution to Financials

0.87% of turnover/revenue and 2.48% of net worth on a standalone basis

What happened

Pavna Industries has completed the disinvestment and transfer of its entire 50.74% stake in Swapnil Switches Private Limited (SSPL), comprising 3,09,001 equity shares.

The buyers are Mrs. Asha Jain, Mrs. Priya Jain and PJ Wealth Management and Consultant Private Ltd. With effect from October 9, 2026, Swapnil Switches ceased to be a direct subsidiary of the Company.

The Company had earlier informed about the disinvestment plan through the outcome of its Board Meeting dated August 24, 2026 and the voting results of its 32nd Annual General Meeting dated September 23, 2026. The agreement for sale was executed on 23rd September 2026, and the shares were transferred on October 9, 2026.

Money involved

• Consideration from the sale/disposal: Rs.2,52,79,372.
• The update states the transaction falls within related party transactions and was done on an arm's length basis and as per a valuation report.
• The stated end use of the proceeds is strengthening the core business, and they can be reinvested in higher-growth two-wheeler or three-wheeler auto industry opportunities.

The buyers

• Mrs. Asha Jain, who is the promoter of the Company.
• Mrs. Priya Jain and PJ Wealth Management and Consultant Private Limited, who belong to the Promoter Group.

Size of the business being sold

On a standalone basis, SSPL's contribution to the Company's financials in the last financial year was:

• Turnover/Revenue: 247.69 (₹ lakhs), contributing 0.87% to the Company's financials.
• Total Income: 275.98 (₹ lakhs).
• Net worth: 487.13 (₹ lakhs), contributing 2.48%.

Stated rationale

The Company lists the objectives as unlocking value for shareholders, optimising the investment portfolio, improving capital efficiency and liquidity, enabling redeployment of resources toward core business operations and strategic growth initiatives, and strengthening the balance sheet.

Also stated

• The sale/disposal of the undertaking is outside a Scheme of Arrangement.
• The disclosure on slump sale is stated as not applicable.

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