The domestic mobile phone manufacturer Lava International is all set to raise funds from primary markets via its primary offering. The company filed draft papers (DRHP) with the Securities and Exchange Board of India (SEBI) for its IPO.
According to the DRHP, the issue will consist of the issuance of fresh equity worth Rs 500 crore and an offer for sale of up to 43.73 million shares by its existing shareholders and promoters.
Existing shareholders participating in the proposed IPO include Hari Om Rai (up to 12.54 million shares), Shailendra Nath Rai (up to 3.14 million shares), Sunil Bhalla and Vishal Sehgal (up to 7.84 million shares each), Unic Memory Technology (up to 11.27 million shares) and Tupperware Kitchenware (up to 0.97 million shares).
Axis Capital, BOB Capital Markets, DAM Capital Advisors, and SBI Capital Markets have been appointed to manage the issue, whereas Link Intime India has been appointed as the registrar to the issue.
The net proceeds from the issue will be utilized for marketing and brand building activities, funding acquisition and other strategic initiatives, and investment in material subsidiaries for funding its working capital requirements.
Lava is a leading end-to-end focused mobile handset and mobile handset solutions company based in Noida (India), with operations in more than a dozen countries.
Up to 50 percent of the total offer is reserved for qualified institutional buyers, and 15 percent for non-institutional investors. The remaining 35 percent stake is allocated to the retail investors.
It designs, manufactures, markets, distributes, and services mobile handsets, tablets, and other electronics accessories under its own LAVA and XOLO brands, and provides value-added software services.
The firm also offers mobile handsets solutions to original equipment manufacturers (OEMs) ranging from sourcing, design, manufacturing, quality testing, embedding software, and distribution.
The company recently inked a partnership license agreement with Lenovo, which entitles it to distribute mobile handsets manufactured by it under the Motorola brand in India and overseas.
Also, Lava International has entered a multi-year contract with HMD for an end-to-end design, manufacturing, supply chain, and distribution of mobile handsets under the Nokia brand in India and overseas.
It has a manufacturing facility located in Noida. As of August 2021, it had more than 15 assembly lines operated by more than 3,100 workforces with a production capacity of 42.52 million feature phone equivalent handsets per annum. As of July, it had 705 service centers and 60 service wheels across India.
For the fiscal year ended on March 31, 2021, the company clocked a revenue from operations to Rs 5512.87 crore against Rs 5264.33 crore a year ago. Net profit for the period stood at Rs 172.61 crore as against 107.76 crores last year.
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