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Continuing the momentum of IPO’s being launched in India, Pavna Industries Limited is coming out with an IPO on February 24, 2021. Here is all you need to know about the issue.

Pavna Industries Limited IPO Details

IPO Date February 24, 2021, to March 01, 2021
Issue Type Book Built Issue IPO
Issue Size 1,800,000 Equity Shares of Rs.10 totaling up to Rs.29.70 Crore
Fresh Issue 902,400 Equity Shares of Rs.10 totaling up to Rs.14.89 Crore
Offer For Sale 897,600 Equity Shares of Rs.10 totaling up to Rs.14.81 Crore
Face Value Rs.10 per equity share
IPO Price Rs.165  per equity share
Market Lot 800 Shares
Min Order Quantity 800 Shares
Listing At BSE, NSE

Pavna Industries Limited IPO Tentative Timetable

Bid/Offer Launch date February 24, 2021
Bid/Offer Last date March 01, 2021
Basis of Allotment finalization date March 04, 2021
Initiation of Refunds March 05, 2021
Credit of Shares to Demat Acct March 08, 2021
IPO Shares Listing Date March 09, 2021

About the company – Pavna Industries Limited 

Pavna Industries Limited, along with its subsidiaries, is engaged in the business of manufacturing automotive parts, providing solutions for automobile applications, and serving automobile & other applications around the world. It manufactures a wide range of automotive components for reputed Original Equipment Manufacturers (OEMs) as per their requirements primarily catering to various vehicle segments, including, passenger vehicles, two-wheelers, three-wheelers, heavy and light commercial vehicles, and off-road vehicles.

The product portfolio of Pavna Industries consists of high-quality reliable parts like:

  • Ignition Switches
  • Fuel Tank Caps
  • Latches
  • Auto Locks
  • Handles
  • Switches
  • Oil Pump
  • Carburetor
  • Throttle Body
  • Fuel Cocks
  • Injection System
  • Casting Components, etc.

The company also offers aftermarket sales and services. It has ultra-modern manufacturing plants in India, located in Aligarh (Uttar Pradesh), Aurangabad (Maharashtra), and Pantnagar (Uttarakhand). Further, it undertakes research and development with a focus on technologically advanced products, innovation, enhancing its products portfolio, improving the quality of its products and manufacturing processes both independently and through cooperation with its customers.

Strengths of Pavna Industries Limited 

  • Pavna Industries is led by Mr. Swapnil Jain, having substantial experience in the automotive industry. The senior management team has experience in the technical, operational, and business development functions of the industry.
  • The manufacturing units of the company are located in key auto-clusters and some of the facilities are in close proximity to the plants of its OEM customers. Apart from allowing it to optimize delivery to its customers, the proximity of its facilities to the plants of its OEM customers also facilitates greater interaction with its customers, thereby enabling it to respond to their requirements in a timely manner.
  • Pavna Industries has several quality certifications and accreditations from recognized agencies like ISO 9001:2015, ISO 14001:2015, OHSAS 18001:2007, and IATF 16949:2016 certifications.
  • The company has a diversified product portfolio catering to different automotive segments including passenger vehicles, two-wheelers, three-wheelers, heavy and light commercial vehicles, and off-road vehicles.
  • Pavna Industries has a consistent track record of financial performance with significant growth in its business.
  • The company has taken several steps to ensure that its orders are fulfilled in time and in a cost-efficient manner.
  • The company has an in-house team of design engineers, tooling, and process engineers to design, develop, fabricate, and test components from the concept stage to the production stage.

Objects of the Offer

Pavna Industries Limited proposes to utilize the net proceeds from the fresh issue towards:

  1. Part repayment of its loans
  2. General Corporate Expenses

Risk Factors

  • The continuing effect of the COVID-19 pandemic on its business and operations is highly uncertain and unpredictable.
  • The company’s reliance on third parties for certain aspects of its business, including contract labor/ job work, transportation, and logistics exposes it to certain risks. Any significant disruption in the availability of contract labor or other third-party services may, in turn, disrupt its operations and adversely affect its inventory management, business, and financial condition, at least until alternative sources are arranged.
  • The discontinuation of, the loss of business with respect to, or a lack of commercial success of, a particular vehicle model for which the company is a significant supplier could affect its business and results of operations.
  • Some of the premises used by Pavna Industries including its Registered Office and manufacturing units are not owned by it and further in case of unavailability of these properties, it would impact its operations, results, and financial condition adversely.
  • A substantial portion of Pavna’s revenues has been dependent upon a limited number of customers and it does not have firm commitment supply agreements with its customers. If its customers choose not to source their requirements from Pavna, its business and results of operations may be adversely affected.
  • The automotive industry is highly competitive, and Pavna Industries faces global competition in its business, which is based on many factors, including product quality and reliability, product range, product design and innovation, manufacturing capabilities, distribution channels, scope and quality, price, customer loyalty, and brand recognition. If its competitors outperform its business and develop superior products at a lesser cost in a timely manner, its growth and financial results could be adversely affected.
  • The operations of Pavna Industries have significant raw material requirements, and it may not be able to ensure the availability of the raw materials at competitive prices, which may adversely affect the results of its operations.
  • The company is involved in a high-volume and low-margin business. Any disruption in its turnover or failure to regularly grow the same may have a material adverse effect on its business, results of operations, and financial condition.
  • The Promoters of Pavna Industries play a key role in its functioning. The company heavily relies on their knowledge and experience in operating its business and therefore, it is critical for its business that the Promoters remain associated with it. Its success also depends on its key managerial personnel and its ability to attract and retain them. Any loss of its key personnel could adversely affect its business, operations, and financial condition.

Some important information about Pavna Industries Limited 

Here is a quick look at some important information about Pavna Industries Limited:

Overview of Pavna Industries Limited’s financials

30-Sep-20 31-Mar-20 31-Mar-19 31-Mar-18
Total Assets 107.78 94.36 63.54 45.76
Total Income 51.72 136.31 137.98 106.78
Total Expenses 51.26 128.85 130.02 101.88
Profit After Tax 0.27 4.08 5.86 3.24

All amounts in Rs Crore

Promoters of Pavna Industries Limited IPO

  1. Mr. Swapnil Jain
  2. Mrs. Asha Jain

How can you apply for Pavna Industries Limited IPO?

You can apply for Pavna Industries Limited IPO by using one of these two methods of payment:

ipo blog cta
  1. ASBA – available via the net banking interface of your bank account. Almost all banks offer this facility
  2. UPI – available with brokers who do not offer banking services. 

FAQs

Q1. What is Pavna Industries IPO?

Pavna Industries IPO is an SME IPO for the issue of 1,800,000 equity shares having the face value of Rs.10 totaling up to Rs.29.70 crores. The registrar for the IPO is Link Intime India Private Limited and the shares will be listed on NSE SME.

Q2. What are the open and close dates of Pavna Industries IPO?

Pavna Industries Limited IPO opens on February 24, 2021, and closes on March 01, 2021.

Q3. What are the lot size and minimum order quantity of Pavna Industries IPO?

The lot size of Part Cruisers IPO is 800 shares and the minimum order quantity is 800 shares.

Q4. When is the allotment of Pavna Industries IPO?

 The Basis of Allotment will be finalized on March 04, 2021, and the allotted shares will be credited to the investor’s demat accounts by March 08, 2021.

Q5. What is Pavna Industries IPO listing date?

The listing date of Pavna Industries IPO is yet to be announced. However, the tentative date is March 09, 2021.

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