Small-cap multibagger stock Pavna Industries will remain in focus in Monday’s trading session after the company announced that the company will form a joint venture company with SmartChip Microelectronic Corporation, on Thursday, August 14.
Pavna Industries share price fell over 2.68 per cent to close at ₹407.30 apiece on Thursday, as compared to previous close of ₹418.50 on Wednesday.
The small-cap stock has remained volatile in the short-term. The stock gained nearly 7 per cent in past five trading sessions, however, descended 5.68 per cent in a month. Pavna Industries shares have given multibagger returns to its long-term investors by soaring over 400 per cent in four years.
Pavna Industries – SmartChip Microelectronic Corporation joint venture details
In an exchange filing dated August 14, the company informed the exchanges that there is a Joint Venture Agreement executed between Pavna Industries and SmartChip Microelectronic Corporation.
The joint venture formed will undertake and carry on the business of making electronic components for the automobile industry.
” The proposed Joint Venture (JV) Company to carry on the business of inter alia making electronic components for the automobile industry (ICE & EV) and for other industries like hardware for cupboard/door locks etc. in residential/commercial industries, aero, medical etc.to Pavna,” the company said in the filing.
The proposed shareholding structure for the joint venture will see Pavna Industries Limited holding a majority stake of 80 per cent, while SmartChip Microelectronic Corporation will own the remaining 20 per cent.
The Authorised and paid-up capital of the company shall be ₹5,00,000 (Five lakh) divided into 50,000 (Fifty Thousand) Equity Shares of ₹10/- each.
The company further informed the exchanges that the joint venture will be subsidiary of Pavna Industries Limited with 80 per cent holding and four directors will be nominated by Pavna Industries and one Director shall be nominated by SmartChip Microelectronic Corporation.
” The Equity Shares of proposed Joint Venture Company will be subscribed at a price of Rs. 10/- each by Pavna Industries Limited and Smartchip Mircoelectronic Corporation,” it said in case of issuance of shares to the parties.