Lava International Limited: An overview for investment

Tuesday, Feb 27, 2024

ISIN

Face Value

Total Shares

P/E of the share

INE745X01022

Rs. 5.00

5411,26,216

29.84

Market Capitalization

Industry

Book Value

P/B of the share

Rs. 5300 crores

Manufacturing

Rs. 42.22

2.29

Category

IPO Status

DRHP Status

Promoter’s Holding

Pre-IPO

2025 expected

Filed in 2021

79.33%



About - 

Lava International Limited, buys, sells, and makes mobile phones, storage devices, and other wireless communication devices. It is a public company based in India, following the laws outlined in the Companies Act of India. The corporate office of the Company is in Karampura, Delhi, and it operates in Noida, Uttar Pradesh. The Company has its own research and development center and manufacturing facilities in Noida. Hari Om Rai, Sunil Bhalla, Vishal Sehgal and Shailendra Nath Rai are the promoters. The main promoter is Hari Om Rai who has 33.33 % stake in the company. As at March 31, 2022, the Company had 9 direct subsidiaries (these 9 direct subsidiaries further had 26 direct/indirect subsidiaries), 1 Joint venture and 1 Associate Company.

Business Offerings - 

Lava Enterprises is involved in various activities such as making, buying, selling, setting up, exporting, importing, renting, and servicing electronic, telecommunication, and electrical equipment. Sojo Distribution, on the other hand, is engaged in activities like manufacturing, distribution, and operating online platforms for business-to-business and business-to-consumer sales. They also work with agents, wholesalers, retailers, and dealers to provide mobiles, laptops, software, electronic gadgets, appliances, communication equipment, and related products. XOLO International (HK), based in Hong Kong, focuses on trading smartphones and accessories. Their major income comes from sale of products and sale of services. The company operates in India, Thailand, Indonesia, Mexico, China, Egypt, Middle East, Nepal, Bangladesh, Sri Lanka, Dubai, Hong Kong, Singapore, USA, Thailand, Indonesia, Bangladesh, Egypt, Ghana, Kenya, Nigeria, Mexico, Nepal, KSA (Saudi Arabia), Kuwait, Bahrain, Oman, Qatar, Romania, China, Papua New Guinea, China, Switzerland, British Virgin Island, Taiwan, Somalia, Mauritius, Dublin, Israel, Sweden and Greece.

Company’ Highlights –

  • The company actively support the Indian government's "Make in India" program by creating a team in India to design their phones. This makes Lava the first company to design phones in India, which helps the country.
  • They were also recognized as the most trustworthy brand in a survey in 2018.
  • Lava phones are available all over India through a large network of 165,000 retailers and 1,000 distributors. They also have a big service network with nearly 800 service centers that focus on providing fast and high-quality service to their customers.
  • Lava International Limited had secured contracts with NOKIA and Motorola for manufacturing and distributing smartphones. They also acquired B mobile, a company based in Panama. This acquisition provides them access to an established market and customer base in 31 Latin American countries.
  • Lava International Limited is ranked as the third largest feature phone company in India based on the number of phones sold in the fiscal year 2021. They have captured a market share of 13.4% in India. Additionally, on a global scale, in the fiscal year 2020, they were the fifth largest feature phone company in the world. They had a market share of 5% based on the number of phones sold.
Company in News 
  • SEBI asks Lava International to refile IPO papers with updates - 

https://www.thehindu.com/business/sebi-asks-lava-international-to-refile-ipo-papers-with-updates/article66387473.ece Jan 17,2023.

  • Lava International signs actor Kartik Aaryan brand ambassador - 

https://www.livemint.com/companies/news/lava-international-signs-actor-kartik-aaryan- brand-ambassador-11663664491813.html Sep 20, 2022.

  • Lava International files draft papers with Sebi for IPO -

https://www.livemint.com/market/ipo/lava-international-files-draft-papers-with-sebi-for- ipo-11632826382385.html Sep 28, 2021.

Disclaimer

Unlisted Assets is not a research firm, stock exchange, advisory platform, or regulated by SEBI. This information is private and shared only for reference purposes. This document is meant to give general information and not advice on investing. It is not an advertisement, solicitation, or offer to buy or sell any financial instruments or participate in any trading strategies. We cannot provide investment advice or act as a fiduciary. Investments have risks and you should use caution and get advice from professionals before investing. The value of investments can go up or down and you may not get back the full amount. Past performance is not a guarantee of future performance. We are not responsible for any losses from investments. Before investing, you should understand the risks and rewards of the investment. Prices in this document are for information only and do not represent the value of securities. We do not guarantee principal protection or returns. There is no guarantee of an exit or listing date. Unlisted shares are locked for six months after listing. We cannot guarantee the accuracy of data used in this document. We are not suggesting any particular course of action. We or any of our representatives may have holdings in the unlisted shares of the represented Company. We are not advisors and cannot be responsible for any investment decisions. You should do your own due diligence before investing or referring.

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