Dalelorenzo's GDI Blog

Lava IPO plan ready, firm dials up shareholders for approval

Homegrown mobile producer, Lava International, is gearing up for an IPO. The corporation has sent a letter to its shareholders regarding the matter, attempting their approbation for the primary swim. The issue will consist of fresh controversy and offer-for-sale by existing eligible shareholders."The fellowship is exploring options for undertaking an initial public offering of its equity shares, subject to market conditions, regulatory permissions, consents and applicable law and other considerations. The render may be undertaken by the company at an appropriate time in consultation with the book rolling make managers( BRLMs) and other advisers appointed for the give, " the note said.ETMarkets has met the imitation of the letter.Lava has plans to raise Rs 1,400 -1, 500 crore via the primary provide, the resources said. The company’s strategy signal the comeback of Indian phone manufacturing times after domestic producers had been edged out of India’s large market by Chinese rivals.Lava reported Rs 5,264 crore receipt for the year ended on March 31, 2020, compared with Rs 5,108 crore reported for the year ago. Net revenue stood at Rs 107 crore, compared with Rs 73 crore in the previous year. The companionship is likely to post robust quantities for FY2020-21 as well. Lava shares have been trading in the Rs 375 -4 00 price range in the unofficial market for unlisted shares. In the previous month, the company allotted shares at Rs 533 apiece via a privileges publish, quality itself at Rs 6,650 crore, simply 1.27 experiences its annual revenue in FY 2019 -2 0. Dinesh Gupta, Co-founder of UnlistedZone, said the management was committed towards the IPO and logically, the issue price cannot be less than the rights issue price."The company is a good bet considering the stretches and increment proposals. PLI scheme of the government will add to its perimeters, strengthening the balance sheet, " he said.Phonemakers are expected to benefit from the PLI scheme, which offers 4-6% incentive for portable makes. Lava is one of five domestic creators that have got approvals under the scheme.However , not everyone is bullish on the company. Sambhav Aggarwal of Delhi-based Arms Securities said, "The illusion might be a delusion. We don't experience numerous beings expending the symbol. One should wait for the latest lists, before taking a final call."The Noida-headquartered Lava International is eyeing stretch with exports in focus. It has submitted proposals to utter low-cost phones for top telecom participates in the US too. The corporation has overseas runnings in 11 countries, including Thailand, Nepal, Bangladesh, Sri Lanka, Indonesia, Mexico and some West Asian countries.

Read more: economictimes.indiatimes.com


How Zomato’s cap table has evolved over the years

As Zomato prepares to go public in the next few months at a its evaluation of anywhere between$ 6 billion and$ 8 billion, ET collaborated with data platform Tracxn to take a closer look at how its valuation has risen and its cover counter has evolved over the years.Zomato is expected to raise as much as $ 750 million to$ 1 billion through its IPO. This would help it build a much-needed war chest to take on chief rival Swiggy, which is also in the process of closing a $800 million fundraise, and e-commerce beings Amazon, which made its food-delivery debut last year.Info Edge, Zomato’s firstly institutional investor, which made a Rs 4.7 -crore investment in the company in August 2010, has a shareholding worth Rs 7,270 crore as per the latest regulatory filings.Another of Zomato's largest stockholders is Ant Financial, which has been unable to participate in the company's pre-IPO round after the authorities concerned stopped clearing Chinese speculations. It hampers a 20% stake in the company, importance Rs 7,729 crore. 8168040 2However, informants have confirmed to ET that ongoing secondary share obtains will bring down Info Edge's shareholding in the company to 17% and Ant Financial's to around 15% in the run up to its IPO.ET had earlier reported that unlike in traditional IPOs, in situations of Zomato , no investor is likely to exit or make money off the table by selling their shares. “People considered that Zomato will be a $50 -billion corporation in five years and that it would be unwise to sell shares right now, ” Deepinder Goyal, founder and CEO of Zomato, had said in a town hall earlier this year.

Read more: economictimes.indiatimes.com