NEW DELHI – Lava International is planning to raise Rs 14 billion (US$192 million) to Rs 15 billion (US$205 million) via an initial public offering, according to reports.

The EMS/ODM said it will file a draft prospectus by the end of June, and plans to use the proceeds to compete with Chinese companies, according to reports.

Unic Memory Technology, which holds a 3.3% share in Lava, is expected to sell at least some of its stake.

Lava designs and makes handsets for Nokia and  Motorola and offers contract manufacturing from its base in India.

Lava’s best year was 2016, when overall revenue reached Rs 72.7 billion, but subsequently fell because the company couldn’t compete with Chinese players with larger budgets. Lava’s full-year 2020 revenue was Rs 52.7 billion, including major contributions from international business. Net profit was Rs 1.07 billion, compared to Rs 730 million in 2019.

Lava is investing Rs 8 billion in its smartphone business and expanding manufacturing capabilities over the next five years.

Ed.: Rs 1 = US$0.014

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