Lava International, an Indian multinational electronics company that manufactures smartphones, has filed Draft Red Herring Prospectus (DRHP) with capital markets regulator SEBI to raise INR 1400- 1500 crore (USD 202 million) through the initial public offering (IPO), said a report in the Economic Times.
The Lava International IPO is expected to hit the stock market in December 2021, said market sources.
According to media reports, proceeds from the issue will be used for marketing and brand building activities, funding acquisition and other strategic initiatives and investment in material subsidiaries, and for funding its working capital requirements.
The company designs, manufactures, markets, distributes and service mobile handsets, tablets, and other electronics accessories under its own ''LAVA'' and ''XOLO'' brands, and provide value-added software services.
Based on sales volume, Lava International is India’s 3rd biggest feature phone business, with a market share of 13.4 percent in the fiscal year 2021. The company says that it has a footprint in countries like Thailand, Sri Lanka, the Middle East, Bangladesh, Mexico, Indonesia, and Nepal.
Lava has recently signed a partnership license agreement with Lenovo to distribute mobile handsets that it makes under the Motorola brand in India and overseas. It has also signed a multi-year contract with HMD Global to design, manufacture and distribute mobile handsets under the Nokia brand in India and overseas.
The company was co-founded by Hari Om and Shailendra Nath Rai and Sunil Bhalla in 2009. Vishal Sehgal joined in 2010.