Introducing the intricate tale of Lava International’s IPO journey. A bold step into the public market was initiated by submitting its Draft Red Herring Prospectus to SEBI, charting a course of fresh ventures. However, a temporary pause arose as SEBI sought specific updates, halting the IPO’s momentum momentarily. Amidst this interlude, Lava’s unlisted shares proceed with a promising narrative of stability and growth, offering investors great opportunities for future gains. This blog will discuss the company’s IPO delay and its impact on Lava International unlisted shares in the grey market.
When Did Lava International File For IPO?
Lava International Ltd took a significant step towards entering the public market by filing its Draft Red Herring Prospectus (DRHP) with SEBI on September 27, 2021. The initial public offering (IPO) consists of a fresh 500 crore rupee issue and an offer to sell up to 43,727,603 equity shares. Lava International also considered a Rs. 100 crore private placement, deducting this from the fresh issue. Entities such as Unic Memory Technology and Tupperware Kitchenware will divest shares through the IPO.
The book-running lead managers, including Axis Capital Ltd, BOB Capital Markets Ltd, DAM Capital Advisors Ltd, and SBI Capital Markets Ltd, facilitated the process. Lava International aims to allocate the funds raised as follows:
- Rs. 100 crores for marketing
- Rs. 150 crores for acquisitions and investments
- Rs. 150 crores for subsidiary working capital
This IPO marks Lava International’s pursuit of growth, market expansion, and enhanced operational capabilities.
Things To Know About Lava International IPO On Hold
Lava International’s eagerly awaited initial public offering (IPO) has paused momentarily as the Securities and Exchange Board of India (Sebi), the capital markets regulator, has returned the company’s draft IPO papers. This directive follows the need for specific updates in the documentation.
In September 2021, Lava International took the first step in the IPO process by submitting a draft red herring prospectus (DRHP) to SEBI, outlining its fundraising plans through an initial share sale. The IPO plan encompasses a fresh equity share issuance of up to Rs 500 crore and an offer for sale (OFS) component involving 437.27,603 equity shares.
The OFS segment includes the sale of equity shares by various stakeholders, such as Hari Om Rai (1.25 crore shares), Shailendra Nath Rai (up to 31.35 lakh shares), Sunil Bhalla and Vishal Sehgal (up to 78.38 lakh shares each), Unic Memory Technology (up to 1.13 crore shares), and Tupperware Kitchenware (up to 9.75 lakh shares).
The capital generated from the issuance of fresh equity shares is designated for diverse purposes, encompassing marketing, brand-building initiatives, acquisitions, strategic actions, subsidiary investments, and fulfilling working capital requirements.
On January 13, 2023, Sebi returned the DRHP to Lava International, advising them to integrate necessary updates before resubmission. This occurrence may briefly delay the IPO’s progress as the company strives to meet SEBI’srequirements and proceed with the IPO process.
Lava International Valuation And Market Cap
Lava International, with 54.11 Crores shares outstanding and a current value of 140 per share, holds a valuation of 7500 Crores. Its revenue for FY 21-22 stood at 5800 Crores, resulting in a Mcap/revenue ratio 1.29. This suggests an under-valued status, given the ratio’s value is below 2, indicating potential investment opportunities through Lava unlisted stocks.
Why Is Investing In Lava International Unlisted Shares Still Beneficial?
Even after its delayed IPO, investing in Lava International unlisted shares remains advantageous due to its strong performance and promising prospects. Renowned for its budget-friendly yet cutting-edge mobile devices, Lava International offers unlisted shares through the Pre-IPO market. With an impressive FY21 revenue exceeding Rs 5,000 crore and a net profit of Rs 173 crore, Lava’s financial health is evident.
Recent data indicates Lava unlisted share price at Rs 110, reflecting stability and potential growth. Notably, the Pre-IPO share prices have showcased a positive trajectory over recent years, hitting a peak of Rs. 141 in FY21 and a low of Rs. 101 in FY18.
Considering Lava’s delayed IPO, the current reports present a favourable opportunity. These factors make investing in Lava International Pre IPO shares an appealing proposition, poised to yield profitable returns in light of the company’s imminent public offering and consistent upward direction.
Boost Your Investment Portfolio Investing In Lava Unlisted Shares
Lava International’s IPO journey has been temporarily paused due to SEBI’s requested updates, underscoring the intricacies of the public market. Despite this interlude, Lava’s unlisted shares exhibit stability and growth potential, offering investors a promising avenue for potential gains. Lava International’s pre IPO shares present an opportunity as investors await the IPO’s progression. For more information about Lava unlisted shares and investment prospects, feel free to contact brokers at Stockify. Take advantage of the possibilities as Lava continues its growth and market expansion path.