Cellphone maker Lava Worldwide recordsdata papers for an IPO to fund its advertising and future progress actions

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  • Lava Worldwide has filed its draft purple herring prospectus (DRHP) for an IPO.
  • The cellphone maker at present has a market share of 13.4% within the characteristic cellphone market in India.
  • The corporate intends to make use of the IPO proceeds for advertising, acquisitions and different strategic initiatives.

Cellphone maker Lava Worldwide has filed its draft purple herring prospectus (DRHP) with the Securities Alternate Board of India (SEBI) to concern recent fairness shares in addition to supply present shares to the general public.

In its DRHP, Lava says that it’ll concern new fairness shares value ₹500 crore, and likewise supply 4.38 crore present fairness shares held by its traders through its preliminary public providing (IPO).

Finer particulars just like the opening date of the IPO, or the worth band per fairness share usually are not identified but. Nonetheless, Lava has underlined the quantum of IPO proceeds that it intends to utilise for various functions:

Particulars Share of web proceeds reserved
Advertising and marketing and model constructing actions ₹100 crore
Funding acquisitions and different strategic initiatives ₹150 crore
Working capital necessities ₹150 crore
Common company functions Steadiness web proceeds

Supply: Lava Worldwide DRHP

The valuation that Lava is aiming for will not be identified but, because the firm is but to finalise a value band for the IPO. Nonetheless, the promoter group holds an 89.6% stake within the firm and the corporate’s share capital stood at ₹125 crore as of 31 March, 2021.

Lava Worldwide was based in 2009 as a telecommunications firm. It has since manufactured smartphones, tablets and different client electronics objects.

It was the primary firm in India to launch a smartphone powered by an Intel processor, the Xolo X900. Aside from Android smartphones, Lava had additionally teamed up with Microsoft to launch the Iris Win1, a Home windows Cellphone-powered smartphone.

Listed below are some key metrics of Lava Worldwide that may assist you to get a short concept in regards to the monetary well being of the corporate:

Particulars 2020-21 2019-20 2018-19
Income ₹5,524 crore ₹5,283 crore ₹5,129 crore
Internet revenue ₹173 crore ₹108 crore ₹73 crore
Internet value ₹1,589 crore ₹1,408 crore ₹1,255 crore
Complete borrowings ₹103 crore ₹177 crore ₹159 crore

Supply: Lava Worldwide DRHPLava at present makes characteristic telephones and sells them in India, Thailand, Sri Lanka, Bangladesh, Nepal, Indonesia, Mexico and the Center East. In line with a Frost & Sullivan report, the corporate held a market share of 13.4% within the characteristic cellphone section in India within the monetary yr 2020-21.

Aside from making its personal characteristic telephones, Lava additionally provides options like sourcing, design, manufacturing and extra to different authentic gear producers (OEMs).

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