Lava International is an Indian-origin smartphone brand and the company has recently filed draft papers with capital markets regulator Sebi. The goal here is to raise funds through an initial public offering (IPO). According to the draft, the IPO comprises of fresh issuance of equity shares worth Rs 500 crore and an offer for sale (OFS) component of 43,727,603 equity shares.
According to sources, the OFS consists of the sale of 1.25 crore equity shares by Hari Om Rai, and up to 31.35 lakh shares by Shailendra Nath Rai, as well as up to 78.38 lakh shares each by Sunil Bhalla and Vishal Sehgal, up to 1.13 crore shares by Unic Memory Technology and up to 9.75 lakh shares by Tupperware Kitchenware.
People familiar with the matter have stated that the proceeds acquired from the issue will be used for marketing and brand building activities, funding acquisitions, and other key strategic initiatives as well as investment in material subsidiaries and for funding the company’s working capital requirements.
Lava International, based off in India has a leading status as an end-to-end focused mobile handset and mobile handset solutions provider and has operations in several countries. It designs, manufactures, markets, distributes, and services mobile handsets, tablets, and other electronics accessories under its brand of ‘LAVA’ and ‘XOLO’.
It has a presence in many emerging markets, such as Thailand, Sri Lanka, the Middle East, Bangladesh, Mexico, Indonesia, and Nepal. Axis Capital, BOB Capital, DAM Capital, and SBI Capital Markets are among the merchant bankers to issue.
This is the latest filing of IPO we are seeing in the growing list of Indian brands going public and seeking fundings.