Lava International Seeks SEBI Approval For IPO
Lava International Ltd. has sought the market regulator’s approval for an initial public offering, deriving optimism from the IPO frenzy.
The Delhi-based mobile handset maker’s offer comprises a fresh issue of equity shares worth Rs 500 crore and an offer-for-sale of up to 4.37 crore shares by existing shareholders and promoters, according to its draft red herring prospectus.
Axis Capital, BOB Capital Markets, DAM Capital Advisors and SBI Capital Markets are the book running lead managers for the issue.
The selling shareholders, according to the prospectus filed with the Securities and Exchange Board of India, include:
Promoter Hari Om Rai: 1.25 crore equity shares.
Unic Memory Technology (Hong Kong): 1.12 crore shares.
Promoter Sunil Bhalla: 78.37 lakh equity shares.
Promoter Vishal Sehgal: 78.37 lakh equity shares.
Promoter Shailendra Nath Rai: 31.35 lakh equity shares.
Tapperware Kitchenware: 9.74 lakh equity shares.
Amit Rai: 76,768 equity shares.
Vikram Singh Parmar: 49,664 equity shares.
The mobile manufacturer is also considering a pre-IPO private placement of equity shares to raise Rs 100 crore—which if completed, will reduce the fresh issue size, the prospectus said.
Lava International makes and sells mobile handsets, tablets and accessories under brands Lava and Xolo and also supplies to original equipment manufacturers. It also has a partnership with Lenovo Group to sell Motorola handsets in India and overseas, and with HMD Global Oy for making and selling Nokia phones in India and aboard.