The Indian smartphone market is rapidly expanding with the penetration of more and more brands into the market. One of the popular homegrown brands that manufacture remarkable handsets full of features, capability, and design is Lava International Limited. It is the third-largest feature phone firm in India, according to Frost & Sullivan, with a market share of 13.4% in terms of sales volume in 2020–21. Currently, the company owns a market share of 10.2 per cent and is continuously expanding its business. Lava International Limited also held a record 5% market share in sales volume in 2020.
Since the beginning, Lava International Limited has been performing well in business and the unlisted share market with remarkable revenue and profits. Even investors benefited by investing in the unlisted shares of Lava International Limited and earned high ROI. As per The Economic Times, the domestic handset maker is gearing up for an initial public offering. In this blog, we will walk you through every IPO detail of Lava International Limited.
An Overview Of Lava International Limited
Established in 2009 by Hari Om Sai, Shailendra Nath Sai, Sunil Bhalla, and Vishal Sehgal, Lava International Limited is an India-based Telecommunication venture and an MNC in the mobile handset industry. The company entered the Indian smartphone market by manufacturing remarkable phones with sleek designs, rich features, and user-friendly interfaces.
Being a reputed handset manufacturer, Lava International Limited is currently present in more than 20 countries, including North America, the Middle East, and Southeast Asia. Furthermore, there are 1.65 lakh retailers that serve more than 1000 distributors directly. Investing in the unlisted shares of a company like Lava International Limited can offer you multibagger returns.
Revenue Sources Of Lava International Limited
Lava International Limited is mainly involved in buying, selling, exporting, manufacturing, hiring, commissioning, importing and servicing electrical and telecommunication equipment. The company handles all these things under the brand labels of LAVA and XOLO. But there are other earning sources of the homegrown company that also trades mobile phones, accessories, and investment holding. Furthermore, the company’s portfolio consists of tablets, mobile phones, smartphones and top-level handsets to cater to the customers’ changing needs. All these products are available in the market at different price brackets so that most customers can own a Lava product.
Currently, Lava International Limited has two substantial manufacturing facilities in India, the only brand that designs and manufactures smartphones in India. Lastly, the company has an in-house team in Noida handling the research, manufacturing and operations. The company is doing great; the total revenue in FY 22 was Rs 5,898 crore, which is more than Rs 5,524 crore in FY 21. As the revenue of the company is increasing, so are its share prices in the unlisted market and attracting potential investors to earn high returns on investments.
IPO Details Of Lava International Limited
Lava International Limited has already filed a Draft Red Herring Prospectus (DRHP) with the Securities & Exchange Board of India (SEBI) and plans to raise around Rs 1500 crore from the market. The total of Rs 1500 crore includes a fresh issue of Rs 500 crore and an offloading component of 43,727,603 equity shares.
As per the company’s DRHP, the offer for sale is 12.5 million equity shares owned by the chairman. In addition, Shailendra Nath Rai will sell 3.13 million shares, and Sunil Bhalla and Vishal Sehgal will offload 7.89 million shares. The investing company, Unic Memory Technology, will sell 11.3 million shares, and 0.97 million shares will be unloaded by Tupperware Kitchenware. The company’s four pillars own a total of 79.33% stake, and they might announce a private placement round to raise around 100 crores before listing.
Furthermore, Lava International Limited also revealed that the earnings from the initial public offering would be used for the company’s betterment, like marketing, funding acquisition, brand building and other strategies to uplift the company. The company also revealed that it would invest in the subsidiaries to fulfil their capital requirements through the funding rounds. Lava International Limited’s IPO is under SEBI’s consideration, and it is the best time for investors to buy Lava International Limited’s unlisted shares to earn high returns on investment.
Invest in Lava International Unlisted Shares With Stockify
Integration of modern technology, delivering high-quality products and services and focusing on customer retention made Lava International Limited the world’s third-largest feature phone company. It is a homegrown brand giving neck-to-neck competition to international brands with years of business experience. The company stands still in both national and international markets with the potential to deliver the products and services customers crave.
Lava International Limited played a significant role in revolutionising the whole smartphone industry. That said, the company is also breaking records in revenue and the grey market. As an investor, you can buy unlisted shares of Lava International Limited or other top-performing companies to diversify the investment risks. You can count on Stockify, India’s leading online brokerage platform, for trading unlisted shares. Connect with our experts to kickstart your investment journey.