Lava International Limited are a major end-to-end mobile phone and mobile handset solutions firm established in India with activities around the globe. The Lava International IPO is expected to hit the stock market in December 2021.
Table of Contents
About Lava International
In respect of 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.
Thailand, Sri Lanka, the Middle East, Bangladesh, Mexico, Indonesia, and Nepal are just a few of the rising areas where they have a footprint.
In terms of sales volume in the calendar year 2020, we are the fifth biggest feature phone company in the globe, with a market share of 5.0 percent, and the fifth, third, and sixth biggest feature phone companies in North America, Asia, and the MEA area, correspondingly.
In respect of sales volume, they had a 10.2 percent market share in India’s less than US$ 70 comparable category in 2021.
Brands
Under their own “LAVA” and “XOLO” trademarks, they develop, manufacture, sell, distribute, and service mobile phones, tablets, and other electronics accessories, as well as providing value-added software services.
Original equipment manufacturers (OEMs) can also benefit from their mobile phone solutions, which include sourcing, design, manufacturing, quality testing, software embedding, and distribution.
We’ve previously designed and manufactured whitelabel mobile devices for global brands including HMD, Bhagwati Products Limited, and TCL.
For GE Healthcare, they also created smartphones with a medical ultrasonography application. This year, their operations brought in INR 55,128.74 million in revenue.
Research and Development
A significant component in their success has been their ability to envision, create, and build features, functions, applications, and services that are suited to the demands of their target clientele.
As of July 31, 2021, their research and development division was structured into software design, industrial design, mechanical design, hardware design, performance optimization, and user interface and use experience teams, with 83 employees stationed in India, including 73 trained engineers.
They have been able to introduce new goods, scale up their product development output, and provide a broad range of products with increased functions and features by leveraging their in-house research and development skills.
Lava International IPO
Lava International Limited, headquartered in Delhi has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 500 crores and 43,727,603 equity share on 27 September 2021.
The offer includes 500 crores value fresh equity shares and there is an offer for sale (OFS) of 43,727,603 equity share by the promoters mentioned in the DRHP. They are also looking to for pre-ipo placement of INR 100 crores.
They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.
Financials Trends
| Particulars | For the year/period ended ( in Cr.) | ||||
|---|---|---|---|---|---|
| 31-Mar-21 | 31-Mar-20 | 31-Mar-19 | |||
| Total Assets | 2,437.55 | 2,384.29 | 2,380.80 | ||
| Total Revenue | 5,523.68 | 5,282.45 | 5,128.75 | ||
| Profit After Tax | 172.61 | 107.76 | 73.18 | ||
Basic and Diluted Earnings Per Share
| Financial Period | Basic EPS (in INR) | Diluted EPS (in INR) | Weight |
| Financial Year 2021 | 3.46 | 3.15 | 3 |
| Financial Year 2020 | 2.16 | 1.97 | 2 |
| Financial Year 2019 | 1.47 | 1.34 | 1 |
| Weighted Average | 4.45 | 0.51 |
Objects of the Issue
- Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
- To meet common corporate objectives.
Basis of the offer
The following are some of the fundamental aspects and key strengths that go into determining the Offer Price:
- With a rising international footprint, a leading end-to-end focused mobile phone and mobile handset solutions firm in India.
- With a solid track record in product invention and design, they have excellent research and development skills.
- Capabilities for large-scale, state-of-the-art production and excellent service.
- A vast distribution network is backed up by cutting-edge information technology.
- Motivated and competent staff, as well as a highly qualified and experienced leadership team.
Lava International IPO Peer Comparison
| S. No. | Face Value | Company Name | PE |
| 1 | 10 | Amber Enterprises India Limited | 127.32 |
| 2 | 2 | Dixon Technologies (India) Limited | 158.98 |
Lava International IPO Details
| IPO Opening Date | December 2021 |
| IPO Closing Date | December 2021 |
| Issue Type | Book Building |
| Face Value | 5 per share |
| IPO Price | 0 to 0 per equity share |
| Market Lot | – |
| Min Order Quantity | – |
| Listing At | BSE, NSE |
| Issue Size | – |
| Fresh Issue | 500 crore |
| Offer for Sale | 43,727,603 Equity shares |
Lava International IPO Date
Lava International IPO opening date is December 2021, and the closing date is December 2021. The Lava International IPO issue may list in December 2021.
| IPO Opening Date | December 2021 |
| IPO Closing Date | December 2021 |
| Basis of Allotment Date | December 2021 |
| Initiation of Refunds | December 2021 |
| Credit of Shares to Demat Account | December 2021 |
| IPO Listing Date | December 2021 |
Basis of Allotment
| Type | % of Offer | Basis of Allotment |
|---|---|---|
| Qualified Institutional Buyer | 75 |
Roughly
equivalent
|
| Non Institutional Investor | 15 |
Roughly
equivalent
|
| Retail | 10 | Minimum level of 1 lot, based on availability, for every shareholder. |
Lava International IPO Allotment Status
Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.
Here, you can find the Allotment Status of Lava International IPO.
Lava International IPO GMP
Lava International IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:
| Date | GMP (in Rs) | Subject to Sauda | Kostak (in Rs) |
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Check Out the GMP of all Other IPOs
Lava International IPO Review
Lava International IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of Lava International IPO is good or bad.
Lava International IPO Risk
- The impact of the COVID-19 epidemic on their business is very unknown and impossible to forecast.
- Their business may suffer if their goods become obsolete as a result of a technological breakthrough or the introduction of alternative items.
- By Way of pledge, their Promoters have encumbered their Equity Shares.
- For certain of their critical components, raw materials, services, and products, they rely on a small number of third-party suppliers.
- There are pending lawsuits against them, and they are a party to certain arbitration processes that, if decided against them, might have a negative impact on their business.
- Their current international activities expose them to a variety of business and political dangers.
Other Threats
- Foreign currencies account for a large percentage of their income and costs, as well as some of their borrowings.
- If They fail to manage their growth efficiently and effectively, they may not be able to achieve their growth goal, and their business may suffer as a result.
- They may not be able to complete favourable deals or properly integrate acquired businesses if they seek acquisitions.
- For supply and shipping, they fully rely on third-party logistics suppliers.
- Significant interruptions in information technology systems or data security breaches might have a negative impact on their business.
- Their finance arrangements have limitations that limit their operational freedom.
Manufacturing Facility
Surface-mount technology, which is a leading technique in mobile phone production, is used to produce and assemble their mobile handsets at their own manufacturing plant in Noida, India.
They have four SMT lines and 12 assembly lines operating as of August 31, 2021, with a total manufacturing capacity of 42.52 million Feature Phone Equivalent devices per year.
For compliance with ISO9001: 2015 and ISO14001 & OHSAS45001 for occupational health and safety, their production plant has been accredited with quality management systems, manufacturing execution systems, and environmental management systems.
We also have a sizable portfolio of intellectual property rights including 98 trademark registrations in India, 12 trademarks overseas
Services
“Provide clients satisfaction via empathy, in a pre-emptive/one-stop solution, with assured quality, at the most effective cost,” is their objective.
Their services include a one-year replacement warranty for feature phones, a two-year handset warranty, screen damage protection for smartphones, and a discount on out-of-warranty parts.
They had 705 service stations and 60 service on wheels around India, as well as an outsourced repair facility with 95 technicians and a contact centre that was open seven days a week and provided customer assistance in ten languages.
For around 99.15 percent of calls, they have demonstrated our efficiency in resolving client queries on the first call.
Distribution Network
Via four distribution channels in India: general trade, online/e-commerce, organized/modern trade, and B2B channel, they have developed an enormous distribution network with a wide geographical reach.
They generally sell their products through the general trade channel, which involves directly supplying their products to distributors and retailers, who then sell them to end-users.
As of July 31, 2021, they had 893 active distributors and 116,339 active retailers in India, giving them substantial depth and breadth of product distribution in India’s major cities, as well as tier 2 and tier 3 cities, and allowing them to roll out new products more swiftly.
Lava International IPO Brokerage views
- Yes Securities : Not Updated
- Choice Brokering: Not Updated
- Axis Securities: Not Updated
- IIFL Securities: Not Updated
- Trade swift: Not Updated
- Anand Rathi : Not Updated
- ICICI Securities: Not Updated
Lava International IPO Subscription Status
| Date | Day | QIB | NII | Retail | Employees | Total Subscription |
| December 2021 | 1 | |||||
| December 2021 | 2 | |||||
| December 2021 | 3 |
Management
Their promoters, Hari Om Rai, Shailendra Nath Rai, and Sunil Bhalla, co-founded their company in 2009, and Vishal Sehgal joined the company in 2010. They have extensive experience in a variety of industries, including electronics and telecommunications.
They think that their vision and leadership have helped them much, and that they, along with their senior management, have played a key role in developing and implementing their fundamental plan.
Promoters
- Hari Om Rai
- Shailendra Nath Rai
- Sunil Bhalla
- Vishal Sehgal
Promoter’s Holding
| Pre Issue Share Holding | 32.23% |
| Post Issue Share Holding |
Lava International IPO Prospectus
Contact Details
Lava International Limited
B-14, House 2 Basement,
Shivlok Commercial Complex,
Karampura, Delhi 110 015, India
Tel: +91 120 463 7100
E-mail: [email protected]
Website: www.lavamobiles.com
Registrar
Link Intime India Private Limited
C-101, 1st floor, 247 Park
Lal Bahadur Shastri Marg
Vikhroli (West)
Mumbai 400 083, Maharashtra, India
Tel: +91 22 4918 6200
E-mail: [email protected]
Website: www.linkintime.co.in
Lead Manager(s)
- BOB Capital Markets Limited
- Axis Capital Limited
- DAM Capital Advisors Limited
- SBI Capital Markets Limited
We hope we are able to answer all your questions about Lava International IPO. If you don’t have a Demat account, open it now with Zerodha best trading app of India.
Disclaimer
The reference of IPO Grey Market Premium (IPO GMP) is only valid for the date specified in the header.
On the IPO Grey Market, we do not purchase or sell IPO forms.
The Kostak Rate is the profit earned by selling an IPO application (in an off-market transaction) to somebody else before the issue is allotted or listed.
Do not subscribe to an IPO based solely on the premium price, as it may alter at any time before to the listing. Only consider the fundamentals of the companies when subscribing.
The GMP rates for IPOs are based on market intelligence. Please keep in mind that these IPO GMP rates may vary by geography and market.
Note:
We do not engage in grey market trading or facilitate the purchase or sale of IPO forms. We don’t endorse such activities at all. We are sticky against such activities & never advise anyone to trade in grey market at all.
FAQ
Lava International IPO Opening Date?
Lava International IPO will open in December 2021.
Lava International IPO Listing Date?
Lava International IPO will list in December 2021.
Lava International IPO GMP Today?
Lava International IPO Grey Market Premium is INR 0 .
Lava International IPO Allotment Date?
Lava International IPO basis of allotment will be in December 2021.
Lot size for Lava International IPO?
Lot size for Lava International IPO is 0.
