SEBI asks to refile preliminary papers to Lava International with updates

18 Jan 2023 , 09:26 AM

Mobile handset and mobile handset solutions company, Lava International has been asked to refile DRHP with updates by capital market regulator, SEBI. This move will further delay the initial public offering for the company.

The company has filed draft papers with SEBI in September 2021. The offer included fresh issue of equity shares of Rs 500 crore and an offer for sale of 4.37 crore by promoters and existing shareholders. The OFS consists of sale of 1.25 crore equity shares by Hari Om Rai, up to 31.35 lakh shares by Shailendra Nath Rai, up to 78.38 lakh shares each by Sunil Bhalla and Vishal Sehgal, up to 1.13 crore shares by Unic Memory Technology and up to 9.75 lakh shares by Tupperware Kitchenware.

As per DRHP, company purposes to use the net proceeds from fresh issue for marketing and brand building activities, funding acquisition and other strategic initiatives and investment in material subsidiaries for funding its working capital requirements.

As per SEBI’s website, the company is asked to refile DRHP with applicable updates and revisions. However, it does not elaborated what updates and revisions are required. 

Lava International is an end-to-end focused mobile handset and mobile handset solutions company based in India. It has operations in Thailand, Sri Lanka, the Middle East, Bangladesh, Mexico, Indonesia and Nepal.

The company designs, manufactures, markets, distributes and services mobile handsets, tablets and other electronics accessories under its own ‘LAVA’ and ‘XOLO’ brands. It also offers mobile handsets solutions to original equipment manufacturers (OEMs) ranging from sourcing, design, manufacturing, quality testing, embedding software and distribution.

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