Shares of Pavna Industries rallied sharply in trade today following the company’s announcement that it entered into a Memorandum of Understanding (MoU) with the Government of Uttar Pradesh for setting up a new manufacturing facility in the state.

The stock opened at Rs.35.00, touched an intraday high of Rs.35.00 and was trading firmly above its previous close of Rs.30.79, indicating strong buying interest and renewed investor confidence. The surge comes amid heavy volumes of 8,553 shares and reflects positive sentiment around the company’s expansion roadmap.

The MoU-driven spike builds on the earlier strategic update dated November 14, 2025, when Pavna announced the acquisition of an additional 4.33 acres of land near Jewar Airport, taking its cumulative land holdings in the region to over 10 acres. This contiguous land bank, located close to the upcoming international airport and emerging industrial corridor, positions Pavna to develop a large-scale manufacturing ecosystem focused on capacity expansion, technology integration and supply-chain efficiency.

Market participants appear to be factoring in the dual triggers — the formal MoU signalling a structured investment and employment plan with state support, and the prior land acquisition that lays the physical foundation for future scale-up. Together, these developments indicate a shift from incremental growth to a more strategic, long-term infrastructure-led expansion phase for the company.

Pavna Industries, with a market capitalisation of Rs.433 crore, operates in the automotive components space serving OEMs across passenger vehicles, two-wheelers, commercial vehicles and off-road segments, and the recent announcements align closely with Uttar Pradesh’s growing auto-component and manufacturing corridor theme, which is increasingly attracting investor attention.