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Lava International Eyes Public Markets with IPO Filing Amidst Feature Phone Dominance in India

Neha Sharma
2 min read
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LAVA International Limited Unlisted Shares
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Indian mobile phone manufacturer Lava International has filed its draft red herring prospectus (DRHP) with SEBI for an IPO, seeking to raise funds for marketing, acquisitions, and strategic initiatives. The company currently holds a significant market share in the feature phone segment in India.

Lava International, an Indian telecommunications company primarily known for its feature phones, is preparing to enter the public markets with an initial public offering (IPO). The company has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), outlining its plans to issue fresh equity shares worth ₹500 crore and offer 4.38 crore existing equity shares held by its investors.

The IPO's proceeds are earmarked for several key areas, including marketing and brand-building activities (₹100 crore), funding acquisitions and other strategic initiatives (₹150 crore), and addressing working capital requirements (₹150 crore). The remaining balance will be allocated for general corporate purposes.

Founded in 2009, Lava International has established itself as a prominent player in the Indian mobile phone market. While the company's valuation target remains undisclosed pending the finalization of the IPO's price band, the promoter group currently holds an 89.6% stake. As of March 31, 2021, Lava's share capital stood at ₹125 crore.

Lava boasts a 13.4% market share in the feature phone segment in India for the financial year 2020-21. Beyond India, Lava extends its reach to other regions, including Thailand, Sri Lanka, Bangladesh, Nepal, Indonesia, Mexico, and the Middle East. Lava also offers sourcing, design, and manufacturing solutions to original equipment manufacturers (OEMs).

Financial performance highlights from the DRHP reveal:

  • Revenue: ₹5,524 crore (2020-21), ₹5,283 crore (2019-20), ₹5,129 crore (2018-19)
  • Net Profit: ₹173 crore (2020-21), ₹108 crore (2019-20), ₹73 crore (2018-19)
  • Net Worth: ₹1,589 crore (2020-21), ₹1,408 crore (2019-20), ₹1,255 crore (2018-19)
  • Total Borrowings: ₹103 crore (2020-21), ₹177 crore (2019-20), ₹159 crore (2018-19)

The details regarding the IPO's opening date and price band are yet to be announced. This IPO marks a significant step for Lava International as it seeks to further strengthen its position in the competitive mobile phone market.

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