Pavna Industries Limited has issued a Postal Ballot Notice seeking shareholder approval for authorising loans, guarantees, investments, and material related party transactions, in line with Sections 185 and 186 of the Companies Act, 2013.
Author: Aditya Pareek | EQMint
Pavna Industries Limited has informed the stock exchanges about the issuance of a Postal Ballot Notice dated January 28, 2026, seeking approval of its shareholders for key financial and governance-related matters. The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and filed with both BSE Limited and the National Stock Exchange of India Limited.
The company has proposed to obtain member consent exclusively through remote e-voting, without convening a physical general meeting, in accordance with the Companies Act, 2013 and applicable MCA circulars.
Remote E-Voting Timeline and Cut-Off Date
As per the notice:
- Cut-off date for voting: Friday, January 23, 2026
- E-voting commencement: 9:00 AM (IST) on Saturday, January 31, 2026
- E-voting closure: 5:00 PM (IST) on Sunday, March 01, 2026
- Declaration of results: On or before Tuesday, March 03, 2026
The company has appointed National Securities Depository Limited (NSDL) to provide the remote e-voting facility. The results of the postal ballot will be communicated to stock exchanges and displayed on the company’s website upon declaration.
Key Resolutions Proposed for Shareholder Approval
The Postal Ballot Notice seeks approval on four major items, comprising special and ordinary resolutions.
1. Approval for Loans, Guarantees and Security Under Section 185
The first resolution seeks authorisation for the Board of Directors to:
- Provide loans
- Give guarantees
- Offer security in connection with loans
This approval is sought under Section 185 of the Companies Act, 2013, for companies in which directors of Pavna Industries Limited are interested. The aggregate exposure limit proposed is ₹500 crore, with the condition that such financial assistance will be utilised only for the principal business activities of the borrowing companies.
The borrowing entities include:
- Pavna Aviation Private Limited
- Pavna Sports and Entertainment Private Limited
- Pavna Auto Engineering Private Limited
- Pavna SMC Private Limited
- Pavna Sunworld Autotech Private Limited
- PJ Wealth Management and Consultant Private Limited.
2. Approval for Loans, Guarantees, Securities and Investments Under Section 186
The second special resolution proposes to authorise the Board under Section 186 of the Companies Act, 2013 to:
- Grant loans
- Provide guarantees or securities
- Make investments in other bodies corporate
The maximum aggregate limit proposed under this resolution is ₹1,500 crore, superseding the earlier limit of ₹750 crore approved at the company’s 30th Annual General Meeting. The enhanced limit is intended to provide greater financial flexibility to support expansion, investment opportunities, and optimal financing structures.
3. Approval of Material Modification in Existing Related Party Transactions
The third resolution seeks shareholder approval for material modifications in existing related party transactions with Mrs. Asha Jain, Promoter, Executive Director, and Chairperson of the Company.
The modifications include increases in:
- Building rent
- Trademark royalty payments
- Lease rent amounts
These changes have resulted in the transactions crossing materiality thresholds as defined under Regulation 23 of SEBI LODR, thereby necessitating shareholder approval through a special resolution. The Audit Committee and Board have reviewed and approved the proposed modifications, confirming that they remain on an arm’s length basis and in the ordinary course of business.
4. Approval of Material Related Party Transactions
The fourth item seeks approval for material related party transactions involving loans, guarantees, and securities to group and associate entities. The aggregate exposure limit for these transactions is ₹500 crore.
These transactions are proposed to:
- Support funding requirements of group companies
- Strengthen operational and financial flexibility
- Enhance group synergies and business continuity
As per SEBI regulations, related parties will abstain from voting on these resolutions. The transactions have been vetted by the Audit Committee and Board to ensure compliance with governance norms.
Scrutinizer Appointment and Governance Compliance
The Board has appointed Mr. Shantanu Jain, Practicing Advocate, as the Scrutinizer to conduct the postal ballot process in a fair and transparent manner. The entire voting process is being carried out in line with:
- Companies Act, 2013
- SEBI LODR Regulations
- MCA Circulars on e-voting and postal ballots
This approach reinforces Pavna Industries Limited’s commitment to robust corporate governance and regulatory compliance.
About Pavna Industries Limited
Pavna Industries Limited is a well-established manufacturer of automobile components, serving leading OEMs across two-wheeler, three-wheeler, passenger vehicle, and emerging EV segments. The company continues to expand its operational capabilities across mechanical, electronic, and advanced automotive systems.
Conclusion
Pavna Industries Limited’s issuance of a Postal Ballot Notice marks an important governance exercise aimed at securing shareholder approval for significant financial authorisations and related party transactions. With proposed exposure limits of up to ₹1,500 crore for loans and investments and ₹500 crore for related party transactions, the company is positioning itself for greater operational and financial flexibility.
Disclosed transparently under SEBI Regulation 30, the initiative reflects Pavna Industries Limited’s structured approach to growth, compliance, and shareholder engagement.
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Source link: BSE
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Corporate actions, loans, guarantees, and related party transactions involve financial and regulatory risks. Readers are advised to consult certified professionals before making any investment or business decisions.
