Lava International Ltd IPO

Last Updated: 09 February 2022 10:40 AM by 5Paisa

IPO Synopsis
Lava International Ltd filed its DRHP with SEBI on 27 September, 2021. The IPO consists of a fresh issue of Rs.500 crore and an offer for sale of up to 43,727,603 equity shares. The company is also considering a private placement worth Rs.100 crore, which will be deducted from the amount of fresh issue. Shares are being offloaded by a few companies including Unic Memory Technology and Tapperware Kitchenware.
The book running lead managers for this issue are Axis Capital Ltd, BOB Capital Markets Ltd, DAM Capital Advisors Ltd and SBI Capital Markets Ltd. 

Objectives of the offer
1.    Rs.100 crore is to be used for marketing and brand building activities
2.    Rs.150 crore will be used to fund acquisitions and other strategic investments
3.    Rs.150 crore is to be invested in material subsidiaries in order to fund their working capital requirements
 

Lava International is an end to end focused mobile handset and mobile handset solutions company. They design, manufacture and distribute tablets, handsets and other electronics accessories under their own brands- “LAVA” and “XOLO”. 
It is the third largest feature phone company in the country and has a market share of 13.4% in terms of volume of sales in FY21. According to F&S, Lava International is the fifth largest feature phone globally and has a market share of 5% in the entire world, in terms of sales volume, in FY20. 
They have a presence in many emerging markets like Mexico, Thailand, Sri Lanka, The Middle East, Bangladesh, Indonesia and Nepal. 
The domestic network of Lava International, as of 31 July 2021, consists of 893 active distributors and 1,16,339 active retailers. Their high market penetration in the Tier 2 and Tier 3 cities of India enables them to roll out new products very frequently. They have 705 service centres and 60 service on wheels in the country. Their call centers operate 7 days a week and have an outsourced repair facility with 95 technicians. They own 98 trademark registrations in India and 12 trademarks, overseas. Their research and development team consists of 83 personnel based in India, and 73 of them are trained engineers. They have also developed a smartphone which has a medical ultrasound application for GE Healthcare. 
 

Financials: