350% rally in five years! Multibagger auto stock hits 20% upper circuit after ₹320 crore fundraise move

Multibagger auto stock: Pavna Industries share price touched 20% upper circuit limit during Thursday's trading session following the company's announcement of plans to raise up to ₹320 crores by issuing equity shares to qualified institutional buyers.

“Approved raising of funds for an aggregate amount not exceeding ₹320 crores through issue of Equity Shares by way of Qualified Institutions Placement (QIP), in accordance with the relevant provisions of applicable law and subject to approval of the company's shareholders and receipt of applicable regulatory approvals,” said the firm in an exchange filing.

Additionally, the company announced that to facilitate the proposed issuance of equity shares, the board has formed the QIP Committee and empowered this committee to determine and undertake the essential measures, including setting the price, timing, terms, and conditions of the QIP.

The company specialises in producing a diverse array of automotive parts for well-known Original Equipment Manufacturers (OEMs) according to their specifications, serving different vehicle categories like passenger cars, two-wheelers, three-wheelers, heavy and light commercial vehicles, and off-road vehicles.

In addition, the company offers aftermarket sales and services, which include products it manufactures such as filters, clutch plates, bearings, wiper blades, and brake shoes.

Pavna Industries share price

Pavna Industries share price opened at an intraday low of ₹320.45 apiece on the BSE, the stock touched an intraday high of ₹373 apiece. Over the last week, Pavna Industries share price increased by 18.97%. In the previous quarter, the stock has declined by 24.97% and has decreased by 28.30% over the past year. The stock has increased by 350% over the past 5 years, providing significant returns to its investors.

According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, Pavna Industries share price have seen strong traction in today's session, with prices surging more than 18% in today's session backed with volume , this move can extend in near term towards ₹400 in near term. With support placed around ₹300.

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