Pavna Industries
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 24 Feb 2021 – 01 Mar 2021
- Listing date
- 09 Mar 2021
- Face value
- ₹10 per share
- Issue price
- ₹165 per share
- Lot size
- 800 shares
- Total issue size
- ₹29.70 Cr
- Market cap at offer price
- ₹100 Cr
- Promoter holding
- 99.99% → 70.45% pre-issue → post-issue
- ISIN
- INE07S101038
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Aryaman Financial Services Ltd.
- Registered office
- Vimlanchal, Hari Nagar, Uttar Pradesh
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 96,000 | — | — |
Application size
Minimum 800 shares per lot, in multiples, at ₹165
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 800 | ₹1,32,000 |
| S-HNI (min) | 2 | 1,600 | ₹2,64,000 |
| S-HNI (max) | 7 | 5,600 | ₹9,24,000 |
| B-HNI (min) | 8 | 6,400 | ₹10,56,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹100 Cr |
About Pavna Industries
Pavna Industries Limited, incorporated on April 19, 1994, is engaged in the business of manufacturing automotive parts and providing solutions for automobile applications serving automobile and other applications worldwide. The Company, along with its subsidiaries, manufactures quality and customer-oriented components catering to Original Equipment Manufacturers (OEMs) and providing automotive after-market solutions. The wide range of product portfolio consists of high-quality reliable parts such as Ignition Switches, Fuel Tank Caps, Latches, Auto Locks, Handles, Switches, Oil Pump, Carburettor, Throttle Body, Fuel Cocks, Injection System, Casting Components, and other metal-based engineering products. The Company operates through multiple manufacturing units located in Aligarh, Aurangabad, and Uttarakhand, and conducts operations through subsidiaries including Pavna Auto Engineering Private Limited, Swapnil Switches Private Limited, Pavna Marketing Private Limited, and Pavna Sunworld Autotech Private Limited.
Company Analysis
from RHPPavna Industries Limited manufactures automotive components and provides solutions for automobile applications, serving OEMs and aftermarket segments globally.
Pavna Industries Limited, incorporated on April 19, 1994, is engaged in the business of manufacturing automotive parts and providing solutions for automobile applications serving automobile and other applications worldwide. The Company, along with its subsidiaries, manufactures quality and customer-oriented components catering to Original Equipment Manufacturers (OEMs) and providing automotive after-market solutions. The wide range of product portfolio consists of high-quality reliable parts such as Ignition Switches, Fuel Tank Caps, Latches, Auto Locks, Handles, Switches, Oil Pump, Carburettor, Throttle Body, Fuel Cocks, Injection System, Casting Components, and other metal-based engineering products. The Company operates through multiple manufacturing units located in Aligarh, Aurangabad, and Uttarakhand, and conducts operations through subsidiaries including Pavna Auto Engineering Private Limited, Swapnil Switches Private Limited, Pavna Marketing Private Limited, and Pavna Sunworld Autotech Private Limited.
Objects of the Issue
- Part Repayment of Loans ₹ 1,300.00 lakhs p.16
- General Corporate Purpose ₹ 162.48 lakhs p.16
- Part Repayment of Loans ₹1,300.00 lakhs p.67
- General Corporate Purpose ₹162.48 lakhs p.68
- Repayment of borrowings ₹1,300.00 lakhs p.67
- General corporate purposes p.67
Issue Structure
- Total Issue
- ₹ 2,970.00 lakhs (18,00,000 Equity Shares at ₹ 165 per share)
- Fresh Issue
- ₹ 1,488.96 lakhs (9,02,400 Equity Shares at ₹ 165 per share)
- Offer for Sale
- ₹ 1,481.04 lakhs (8,97,600 Equity Shares by Mrs. Asha Jain at ₹ 165 per share)
- Price Band
- ₹ 165 per Equity Share (Fixed Price)
- Lot Size
- 800 Equity Shares as minimum market lot and trading lot in multiples of 800 thereafter; subject to a minimum allotment of 800 Equity Shares to successful applicants
- Face Value
- ₹ 10 per Equity Share
Business Model
The Company operates a high-volume, low-margin manufacturing business model where it procures raw materials (zinc, aluminium, plastics, brass, sheet metal parts, nickel), manufactures automotive components and metal-based engineering products, and supplies them primarily to Original Equipment Manufacturers (OEMs) on purchase order basis. The Company also provides aftermarket sales and service for various vehicle segments through a distribution network of approximately 50 distributors across India. Revenue is generated through sales to OEM customers and replacement/aftermarket sales.
Business Segments
SWOT Analysis
- • Established automotive components manufacturer with diversified product portfolio(p.16)
- • Presence across multiple manufacturing locations with geographic diversification(p.27)
- • Experienced and diversified management team in automotive industry(p.92)
- • Well-established manufacturing facilities in key auto clusters with proximity to OEM customers(p.92)
- • ISO and IATF certifications demonstrating quality standards(p.92)
- • Diversified product portfolio across multiple automotive segments(p.94)
- • In-house design and R&D capabilities with advanced technical software(p.94)
- • Consistent revenue growth track record(p.93)
- • Strong OEM customer relationships and repeat order capability(p.106)
- • Diversified product portfolio across multiple vehicle segments(p.121)
- • Modern manufacturing facilities with ISO and IATF certifications(p.122)
- • Strategic geographic location near OEM customer plants(p.121)
- • Joint venture with foreign technical collaborators(p.108)
- • Diversified product portfolio across automotive segments(p.202)
- • Modern manufacturing facilities in key auto-clusters with proximity to OEM customers(p.202)
- • ISO and IATF certifications for manufacturing standards(p.203)
- • Strong promoter experience in automotive industry(p.203)
- • Diversified customer base across geographies and markets(p.201)
- • High dependence on limited number of customers(p.24)
- • Substantial unsecured debt from Promoters/Directors repayable on demand(p.23)
- • Reliance on rented/leased premises for operations(p.23)
- • Negative operating cash flows in recent periods(p.27)
- • Low profit margins in high-volume, low-margin business model(p.28)
- • Limited control over subsidiary and joint venture operations(p.27)
- • Missing corporate records and documentation(p.34)
- • High dependence on top customers for revenue(p.105)
- • Significant debt levels with substantial borrowings(p.49)
- • Plant concentration in three geographical locations(p.94)
- • Severe profitability decline in period ended September 30, 2020(p.50)
- • High dependence on few major customers(p.106)
- • Concentration of manufacturing facilities in limited geographic locations(p.121)
- • Significant dependence on promoter-owned properties for manufacturing(p.109)
- • Limited owned real estate; heavy reliance on leased properties(p.109)
- • High customer concentration among top customers(p.202)
- • High raw material cost dependency(p.202)
- • Limited financial resources compared to larger competitors(p.202)
- • Revenue decline due to COVID-19 pandemic disruption(p.203)
- • Sub-optimal capacity utilization post-lockdown(p.203)
- • Expanding Indian automotive industry with significant growth potential(p.16)
- • Growing automotive component demand with improving production trends(p.16)
- • Expansion of global footprint and export market penetration(p.95)
- • Diversification of product portfolio with new automotive components(p.94)
- • Consolidation of group manufacturing activities for scale benefits(p.94)
- • Growth in Indian automotive components sector projected to reach US$ 200 billion by 2026(p.88)
- • Expansion into new markets and geographic footprints(p.122)
- • Development of new products for OEM customers' new models(p.106)
- • Aftermarket sales expansion through subsidiary channels(p.107)
- • Research and development capabilities through technical partnerships(p.122)
- • Expansion of product portfolio and geographic presence(p.200)
- • Investment in research and development for technological advancement(p.203)
- • Potential to introduce new products and applications(p.202)
- • Aftermarket sales and services expansion(p.200)
- • COVID-19 pandemic impact on operations and supply chains(p.21)
- • High competitive intensity in automotive components industry(p.25)
- • Dependence on purchase orders without firm commitments(p.22)
- • Vulnerability to raw material price fluctuations and supply disruptions(p.25)
- • Reliance on third-party contractors for critical functions(p.22)
- • Risk of vehicle model discontinuation affecting demand(p.22)
- • Regulatory compliance requirements and licensing risks(p.28)
- • Economic slowdown and macroeconomic uncertainties in India(p.39)
- • Foreign exchange rate fluctuations affecting profitability(p.32)
- • Rising labour costs and potential labour unrest(p.31)
- • COVID-19 pandemic impact on manufacturing operations and demand(p.92)
- • Sub-optimal capacity utilization due to supply chain constraints(p.92)
- • Automotive industry cyclicality and volatility in vehicle sales(p.81)
- • Raw material price fluctuations and supply risks(p.104)
- • Foreign exchange risk on export sales(p.105)
- • Intense competition from established competitors with greater resources(p.110)
- • Low barriers to entry enabling new competitors and capacity expansion(p.110)
- • Price pressures from low-cost manufacturers in emerging markets(p.110)
- • Environmental and regulatory compliance requirements(p.106)
- • Dependence on stable input costs and forex fluctuations(p.108)
- • Cyclical nature of automotive industry affecting demand(p.201)
- • Economic downturn impact on vehicle production and sales(p.201)
- • Raw material price volatility and supply constraints(p.202)
- • Intense global competition with pricing pressures(p.202)
- • Competition from low-cost producers in emerging markets(p.203)
- • Ongoing COVID-19 pandemic economic uncertainty(p.203)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Swapnil Jain | Promoter | 86.48% (with Promoter Group at 13.51%) | — |
| Mrs. Asha Jain | Promoter/Promoter Selling Shareholder | 86.48% (with Promoter Group at 13.51%) | — |
| Mrs. Asha Jain | Promoter | 73.41% | 47.80% |
| Mr. Swapnil Jain | Promoter | 13.07% | 11.13% |
| Mr. Pawan Jain | Promoter Group | 0.00% | 0.00% |
| Pawan Jain (HUF) | Promoter Group | 0.01% | 0.01% |
| Mrs. Priya Jain | Promoter Group | 3.89% | 3.32% |
| PJ Wealth Management and Consultant Private Limited | Promoter Group | 9.61% | 8.19% |
| Mrs. Asha Jain | Founding Promoter and Executive Director | 73.41% | 47.08% |
| Mr. Swapnil Jain | Co-Promoter and Managing Director | 13.07% | 11.13% |
| Mrs. Asha Jain | Promoter | 73.41% | — |
| Mr. Swapnil Jain | Promoter | 13.07% | — |
| PJ. Wealth Management and Consultant Private Limited | Promoter Group | 9.61% | — |
| Mrs. Asha Jain | Promoter/Selling Shareholder | — | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.