Pavna Industries Reports Lapse of Convertible Warrants and Announces Management Restructuring and New Auditor Appointment
Pavna Industries Limited has announced a significant outcome regarding its convertible warrants, detailing the lapse and subsequent forfeiture of those warrants. The company also disclosed changes in its senior management personnel and approved the appointment of M/s Suri & Sudhir as its Internal Auditor for Fiscal Year 2026-27.Warrants Lapse and Forfeiture Details
The outcome of the convertible warrants relates to an earlier preferential allotment made by the company, which included 24,00,000 convertible warrants issued to promoter and promoter group entities. These warrants were part of a larger issuance that also saw 17,72,200 equity shares allotted to Non Promoter Group members at an issue price of ₹505/- per share (including the face value of ₹10/-).The terms of issue stipulated that while 25% of the issue price was received upfront, the remaining 75% was due upon the exercise of the warrants within a period of 18 months from the date of allotment.
The company announced that warrant holders informed the Board that they would be unable to remit the balance consideration within the stipulated timeline. Consequently, the outstanding warrants lapsed on July 28, 2026.
As a direct consequence, Pavna Industries stated that the upfront subscription amount received at the time of allotment, which amounted to ₹30,30,00,000/-, stood forfeited with effect from July 29, 2026. The forfeiture aligns with the terms of the SEBI ICDR Regulations.
The details regarding the lapse and forfeiture are summarized below:
| Particulars | Details |
|---|---|
| Type of Securities | Convertible Warrants |
| Total Number of Warrants Originally Allotted | 24,00,000 |
| Issue Price per Warrant | ₹505/- |
| Date of Allotment | January 29, 2025 |
| Tenure for Exercise | 18 months (Until July 28, 2026) |
| Warrants Lapsed | 24,00,000 |
| Amount Forfeited | ₹30,30,00,000/- |
The forfeiture means that the warrant holders cease to have any rights or entitlement to seek conversion into equity shares of the company. The company affirmed that there will be no change in its paid-up share capital structure, and the forfeited amount shall be retained by the company.
A breakdown of the lapse across different warrant holders is provided below:
| Name of Warrant Holder | Number of Warrants Allotted/Lapsed | Amount Forfeited (25% Upfront Consideration) |
|---|---|---|
| Mrs. Asha Jain | 12,00,000 | ₹15,15,00,000 |
| Mr. Swapnil Jain | 6,00,000 | ₹7,57,50,000 |
| Mrs. Priya Jain | 6,00,000 | ₹7,57,50,000 |
| Grand Total | 24,00,000 | ₹30,30,00,000 |
Senior Management Personnel Identified Following Internal Restructuring
The company also provided details regarding the identification of its Senior Management Personnel (SMP) following an internal restructuring of the reporting hierarchy. The designation of these personnel was effective from July 27, 2026.The designated SMPs include individuals across various functions such as Production Head, Chief Financial Officer, and Head (Operations). Key appointments reported in this list include:
| S.NO | Name of Senior Management Personnel (SMP) | Designation in the Company | Brief Profile |
|---|---|---|---|
| 1 | Mr. Sachin Kumar | Production Head | Qualified Diploma in Mechanical Engineering with 6 years of experience as in press shop. |
| 3 | Mrs. Palak Jain | Chief Financial Officer | Qualified MBA having 8.6 years of experience in accounts. |
| 5 | Mrs. Kanchan Gupta | Company Secretary & Compliance Officer | Qualified Company Secretary and MBA and having 7 years of experience as company secretary. |
| 11 | Mr. Vijay Kumar Sharma | CEO (Operations) | Qualified BE having 28 years of experience in operations. |
The list provided a total of 38 individuals identified as SMPs, covering roles ranging from production head to process engineering and marketing.
Appointment of Internal Auditor
Pavna Industries Limited announced the approval of M/s Suri & Sudhir, Chartered Accountants (F.R.N.000601N), for the appointment as the Internal Auditor for the Financial Year 2026-27. The firm was appointed on July 27, 2026.M/s Suri & Sudhir is a reputable Audit and Advisory firm established in 1968, possessing over 50 years of experience across Statutory & Internal Audits, Taxation, Cross-Border Taxation, Accounting Advisory, Business Restructuring Advisory, Due Diligence, and more. The firm holds a Peer Review Certificate valid until June 30, 2029, and is compliant with SQC1 issued by ICAI.
PAVNAIND Stock Price Movement
Pavna Industries Limited finished Monday higher, with shares climbing 0.87% and settling at ₹16.22. The equity traded on a volume of 26,945, moving up from the previous close of ₹16.09.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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