Pavna Industries shares jump 10% after signing MoU with Uttar Pradesh Govt

Pavna Industries shares rose 10 per cent after it signed a Memorandum of Understanding with the Government of Uttar Pradesh

Shares of Pavna Industries Ltd. rose nearly 10 per cent on Tuesday after the company signed a Memorandum of Understanding (MoU) with the Government of Uttar Pradesh (GoUP). 

 

The auto component maker's stock rose as much as 9.5 per cent during the day to ₹33.7 per share, the biggest intraday rise since October 27 this year. The Pavna Industries stock pared gains to trade 2.37 per cent higher at ₹31.52 apiece, compared to a 0.15 per cent advance in Nifty 50 as of 10:40 AM. 

 

Shares of the company snapped a three-day decline and currently trade at 1.4 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 36 per cent this year, compared to a 9.8 per cent advance in the benchmark Nifty 50. Pavna Industries has a total market capitalisation of ₹439.8 crore.   FOLLOW LATEST STOCK MARKET UPDATES LIVE

Pavna Industries signs new MoU

Pavna Industries has signed a Memorandum of Understanding (MoU) with the Government of Uttar Pradesh on November 24, 2025, according to an exchange filing. 

 

Under the agreement, the company plans to invest ₹250 crore over the next three to five years in a proposed project in the state and create around 500 jobs. Pavna Industries will hold no shareholding in the government entity involved, the company said. 

 

As part of the MoU, the Uttar Pradesh government will facilitate the establishment of the project by helping the company secure necessary permissions, registrations, approvals and clearances. It will also assist the firm in availing of the incentives offered under various state and central schemes, it said.   ALSO READ | Here's why ACME Solar Holdings share price rose 3% in trade 

Earlier this month, the company said it acquired an additional 4.33 acres of land near the upcoming Jewar Airport in Uttar Pradesh, further expanding its contiguous landholding in the area.

 

This latest purchase follows earlier acquisitions of 1.89 acres and 4.96 acres in August 2025, and 4.64 acres in July 2025, it said. The expanded land parcel supports the company’s long-term strategy to build capacity and strengthen its infrastructure, the company said.

 

Pavna Industries manufactures automotive components for passenger vehicles, two-wheelers, three-wheelers, commercial vehicles and off-road vehicles. Pavna Industries returned to profitability in Q2 FY26 with a consolidated net profit of ₹1.27 crores, reversing a loss of ₹2.10 crores in the previous quarter.