LAVA International Ltd is a prominent mobile manufacturing outsourcing company in India. The company is committed to seizing opportunities to produce high-value products for industries where India has a competitive advantage. To expand its margins and raise fresh funds, Lava International is planning a combination of a fresh issue of shares and an offer for sale. With this strategic move, they plan to become a top player in India’s mobile manufacturing industry. Now let’s read about Lava’s unlisted share and its success margins and share price with seven things you need to know about Lava IPO.
An Overview Of LAVA International Ltd
Lava International is a company that designs, manufactures, and distributes mobile handsets and electronics accessories under their own brands- “LAVA” and “XOLO.” Also, LAVA’s share is 13.4% for feature phones in the Indian market, and it is the fifth largest feature smartphone company in the world with a 5% market share. They have a presence in many emerging markets and have a strong distribution network in India with 893 active distributors and 116,339 active retailers. They also have a dedicated research and development team based in India.
7 Things You Need To Know About Lava IPO
Given below is the list of seven things you need to know about Lava IPO:
IPO Offer For Lava International
The IPO offer for Lava International includes a fresh issue of equity share worth Rs. 500 crores and provides for the sale of up to 43.73 million shares by new investors and promoters. The actual size of the issue is unknown until the price band is announced, but it is estimated to be worth approximately Rs. 1,500 crores.
Lava International Ltd Plans To Issue 43.73 Billion Shares
Lava International Ltd plans to issue 43.73 billion shares for sale. The offer will contain 12.54 million shares from Hari Om Rai and 3.14 million shares from Shailendra Nath Rai, and up to 7.84 million shares from any other source. In addition, Unic Memory Technology is offering 11.27 million shares, and Tupperware Kitchenware Pvt Ltd is offering 0.97 million shares, making a total of 43.73 million shares.
Lava Raised Rs. 500 Crores Through A Fresh Issue
Lava has recently invested a significant amount of Rs. 500 crores through a fresh issue. The allocation of this amount is noteworthy, with Rs. 100 crores set aside for marketing purposes, Rs. 150 crores for inorganic acquisitions, Rs. 150 crore for the working capital of subsidiaries, and the remaining balance for general expenses. This strategic distribution of funds showcases the company’s focus on growth and expansion in various areas of its operations.
Lava International Collaborates With Lenovo
Lava International, a renowned mobile device manufacturer, has recently partnered with Lenovo, a leading global technology company. The agreement grants LavaInternational the exclusive rights to distribute Motorola-branded mobile handsets across India and other international markets for a considerable number of years. The partnership entails design, manufacturing, and marketing collaboration, focusing on delivering high-quality mobile devices to customers worldwide.
The Fiscal Year Revenue Of Lava International
For the fiscal year ending March 2021, LAVA International reported revenues of Rs. 5,513, representing a 4.73% increase YoY. The firm net income for the year was Rs. 172.61 crore, showing a sharp growth of 60% YoY. LAVA International has a leading-edge SMT manufacturing facility in Noida and employs 3,105 workers across its production and assembly lines. The company has the capacity to manufacture smartphone 42.52 million units annually and provides customer support through its 705 service centers and 60 service wheels across India.
Axis Capital Manage the IPO Of Lava International Will
LAVA International Ltd has announced that its initial public offering (IPO) will be overseen by four esteemed book-running lead managers (BRLMs): Axis Capital, BOB Capital Markets, DAM Capital Advisors (formerly known as IDFC Securities), and SBI Capital Markets. These reputable firms will ensure that the IPO is managed with the highest level of professionalism and expertise.
Why Should You Invest In Lava Unlisted Shares?
With advanced technology, state-of-the-art manufacturing, and quality service capabilities, LAVA International Ltd. Also, it has become the world’s third-largest feature smartphone company. It is a renowned name in the handset market globally, earning flabbergasting revenue from its national and international markets.
As the company sells smartphones nationally and internationally, its market is expected to grow from USD 484.81 billion in FY22 to USD 792.51 billion by FY29, with a 7.3% CAGR during the predicted period. Investing in Lava’s unlisted shares is ideal for investors, but it is important to pick a trustworthy platform. Stockify is the most appropriate and trustworthy platform to check LAVA share price and buy unlisted shares. Moreover, Stockify provides investors with easy access to alternative investment sources with lower entry barriers. Therefore, investors looking to invest in unlisted shares will find Stockify to be the best option available.