Lava International Ltd filed for an initial public offering (IPO) with Rs 500 crore in new equity shares and 437 lakh equity shares from existing shareholders. Lava International is India’s third-largest feature phone maker.
The company is an end-to-end mobile handset and solution provider based in India. They are India’s third-largest feature phone maker and the world’s fifth-largest by market share.
They serve the whole Indian market and have a strong presence in several countries, including Thailand, Sri Lanka, the Middle East, Bangladesh, Mexico, Indonesia, and Nepal.
Lava International Ltd. IPO Objective
- The company will use the net proceeds raised for marketing and brand-building purposes.
- Rs 150 crore will go towards funding acquisitions and strategic initiatives.
Lava International Ltd IPO Financials
| Particulars | FY21 | FY20 | FY19 |
|---|---|---|---|
| Revenue From Operation | 55,128.74 | 52,643.29 | 51,083.52 |
| EBITDA | 2512.15 | 1992.56 | 1831.99 |
| EBITDA Margin (%) | 4.56 | 3.79 | 3.59 |
| Profit After Tax | 1,726.08 | 1,077.6 1 | 731.82 |
| EPS | 3.15 | 1.97 | 1.34 |
Why should you invest in the Lava International Ltd. IPO?
- Under the Lava and XOLO brands, the company makes and sells a wide range of mobile handsets, tablets, and other electronic equipment.
- According to F&S, the company captured a 13.4% market share by sales volume in 2021.
- With a 10.2% market share in the less than USD 70 segment, they are India’s third-largest feature phone business.
- Lava International has inked a license agreement with Lenovo that will allow it to supply Motorola mobile handsets in India.
Know before investing
Strengths
- The F&S report predicts a shift from feature-based phones to entry-level smartphone subscribers in India.
- The company’s technical and R&D capacities will help it capitalize on the trend change.
- The company has a strong brand recall in the under-$70 market segment.
- The brand has established itself in several emerging and foreign markets and recently launched its products and services in the USA.
Risks
- The brand continues to face challenges from large and established competitors.
- Failing to anticipate changing market and customer preferences will hurt the company’s future cash flow.
- Technical breakthroughs that the brand fails to match or adapt to may render its products obsolete.
- Its profitability could be harmed by its inability to maintain and expand its sales.
Lava International Ltd. Noteworthy Highlights
- The company has derived, respectively, 29.33% and 70.67% of its revenue from domestic and international businesses.
- Lava International offers mobile handset solutions to OEMs.
- According to an F&S report, India’s mobile phone subscription market will grow at a CAGR of 3%, from 1,181 million in 2021 to 1,369.1 million in 2026.
Lava International Ltd IPO FAQs:
Q1. What is Lava International Ltd. IPO?
Ans. Lava international Ltd. IPO constitutes a fresh issue aggregating up to Rs. 500 crore and an offer for sale of up to 437 lakh equity shares.
Q2. When will Lava International Ltd.’s IPO allotment be available?
Ans. Details not available.
Q3. What will be Lava International Ltd.’s IPO lot size?
Ans. Details not available.
Q4. What minimum lot size can retail investors subscribe to?
Ans. Retail investors can apply for a minimum of one lot.
Q5. When will Lava International Ltd. list on exchanges?
Ans. It usually takes ten business days from the last day of subscription to list the IPO on the bourses.
Q6. What would be the listing gains on Lava International Ltd. IPO?
Ans. Listing gain refers to the price difference between the IPO’s opening and offer prices. The listing gain depends on investors’ interest, global parameters, and short and long term outlooks.
Q7. I have finished the application process for Lava International Ltd. IPO, but the funds are not yet debited. What is the reason?
Ans. The bank initially blocks the amount when you bid for IPO. It will debit the amount when shares are allotted to you or unblock it after the UPI mandate expiry date.
Q8. Can I alter my bid for Lava International Ltd.’s IPO after confirming its final application?
Ans. It is possible to alter the price or the lot size using the changing/revising form available with the application. But it could be a challenge to complete the process within the time given.
Q9. Can I submit more than one application for the public issue of Lava International Ltd. using one PAN?
Ans. No. Only one application at a time is allowed against one PAN card.
Q10. Who is the owner of Lava International Ltd.?
Ans. Hari Om Rai is the Chairman and Managing Director of Laval International Ltd.
