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Sebi returns Lava International's draft IPO papers; asks to refile with updates

PTI   

Sebi returns Lava International's draft IPO papers; asks to refile with updates
Stock Market2 min read
Capital markets regulator Sebi has returned the draft IPO papers of Lava International and asked the home-grown mobile maker to file documents again with certain updates. The move might delay the company's initial public offering (IPO).

Lava International filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) in September 2021 to raise funds through an initial share sale.

The proposed IPO comprises fresh issuance of equity shares worth up to Rs 500 crore and an offer for sale (OFS) component of 4,37,27,603 equity shares.

The OFS consists of the 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.

The company proposes to utilise the proceeds from the fresh issue for marketing and brand-building activities, funding acquisition and other strategic initiatives and investment in material subsidiaries, and for funding its working capital requirements.

According to an update with Sebi's website on Tuesday, the market regulator returned the company's DRHP on January 13, 2023, with advice to refile it post applicable updates/ revisions.

However, the regulator has not elaborated on the updates or revisions required in the draft documents.

Lava International is a leading end-to-end focused mobile handset and mobile handset solutions company based in India, with operations in a number of countries.

The company designs manufactures, markets, distributes and services mobile handsets, tablets and other electronics accessories under its own 'LAVA' and 'XOLO' brands, and provides value-added software services.

It has a presence in many emerging markets, such as Thailand, Sri Lanka, the Middle East, Bangladesh, Mexico, Indonesia and Nepal.

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