Pavna’s Precision Play: Auto Parts Maker Approves 1:10 Stock Split to Woo Retail Investors

Pavna Industries Ltd, a key player in India’s auto components sector, has officially approved its first-ever stock split, announcing a 1:10 subdivision of equity shares. The move, finalized at the board meeting on July 2, 2025, aims to enhance stock liquidity and broaden retail participation amid a challenging earnings backdrop.

 

The company will split each ₹10 face value share into 10 shares of ₹1 each, subject to shareholder and regulatory approvals. This strategic step comes as Pavna grapples with declining profits and revenue in FY25, and seeks to re-energize investor interest after a 400% rally over the past four years.

 

Key Highlights:

 

Stock Split Ratio: 1:10; each ₹10 share to be split into ten ₹1 shares.

Objective: Improve affordability, boost liquidity, and attract retail investors.

Timing: Implementation expected by Q3 FY26, pending approvals.

Financials: FY25 net profit fell 30.2% YoY to ₹7.37 crore; revenue dipped 2.7% to ₹308.24 crore.

Market Reaction: Shares closed at ₹403.10 on June 30, down 2.43%, but remain significantly above 52-week lows.

Strategic Context: The split follows weak Q4 earnings and is seen as a sentiment booster amid margin pressures and raw material cost headwinds.

Company Profile: Founded in 1994, Pavna supplies ignition systems, fuel caps, and throttle bodies to major OEMs across India and abroad.

 

Analysts view the move as a tactical recalibration to maintain investor momentum while the company navigates a soft patch in the auto sector.

 

Sources: Times Now, ET Now, LiveMint