LAVA International Limited Unlisted Shares| Lava Share Price & Updates
Company Overview
Starting in 2009, Lava International has emerged as one of the leading end-to-end mobile phone brand with presence in key emerging markets of the world. According to F&S, Lava is now the 3rd largest feature phone company in India with 13% market share in terms of sales volume during the financial year 2021. The company markets its feature phones under LAVA & smartphones under XOLO brand. Besides mobile phones, the company also manufactures laptops, tablets, mobile and computer accessories like power bank, chargers, and earphones. The company was founded by Hari Om Rai, Shailendra Nath Rai, Sunil Bhalla and Vishal Sehgal.
The strategy of the company is to be dominant in the feature phones market while offering smartphones with top-notch specifications at lower price points. The company was the first to launch a smartphone with Intel Processor in India.
In September, 2021, the company filed DRHP with SEBI to raise fresh issuance of equity worth ₹500 crores and an offer for sale of 4.37 crore equity shares.
In November, 2021, as part of its international expansion strategy, Lava purchased Latin American handset brand China Bird Centro America S.A. for $50 million and has signed a global licensing deal with Lenovo-owned Motorola to launch the Moto-brand. This will help the company in expanding its business in 31 Latin American countries.
Business Model
Lava designs, manufactures, markets, and distributes mobile handsets, tablets, and other handheld devices and also provides value-added software services. Lava has a manufacturing plant in Noida with an annual installed capacity of 42 million feature phones and Lava is India’s only company to be fully reliant in hardware designing, and using SMT technology. The company also does white-label custom manufacturing for other OEMs like Nokia, AT&T, Motorola, GE. The manufacturing facilities of Lava are geared to meet the domestic and export demand of mobile handset devices.
The company has been shortlisted by Govt. of India among 16 companies to receive production linked incentives (PLI), which provides incentives from 4-6% on incremental sales. The company is expected to be a big beneficiary of Govt of India PLI scheme which will boost their margins. The company has a domestic network of 893 distributors, 116339 retailers and 705 service centres with in-depth reach in tier2 and tier 3 cities.
Lava derives 30% of its consolidated turnover from India while remaining 70% of its sales comes from exports to Middle East, North America, South America, South-East Asia, Sri-Lanka, Nepal and Bangladesh.
Brands
Smartphones – The company markets its smartphones with price range from ₹ 6,388 to ₹ 10,299 under brands: Agni 5G, Z3, Z2s, Z2 Max, Z4, Z2, Z1, Z6, BeU, Lava Z66, Lava Z61 Pro.
Feature Phones– The company markets its feature phones with price range from ₹ 735 to ₹ 1,999 under brands: A1 Super 21, A1 Josh 21, A1 2021, Lava Flip, Lava Plus 1, Hero 600s, Hero 600+, A7 2020, Lava Pulse, Lava A9, Lava A5, A1200.
Tablets– Lava Ivory, Lava Aura, Lava Magnum XL
Registered Office
The registered office of the company is located at B-14, Shivlok Commercial Complex, Karampura, Delhi and its corporate office is located at A-56, Sector -64, Noida, Uttar Pradesh. The manufacturing unit of Lava is located in Noida, Uttar Pradesh.
| Symbol | LAVA International Ltd. |
|---|---|
| Face Value (₹): | 5 |
| ISIN: | INE745X01022 |
| Demat Status: | NSDL & CDSL |
| Lot Size: | 75 Shares |
Board of Directors:
| Name | Designation | Profile |
|---|---|---|
| Mr.Hari Om Rai | Chairman & Managing Director |  |
| Mr.Sunil Bhalla | Co-founder & Director | |
| Mr.Shailendra Nath Rai | Co-founder & Director |  |
| Mr.Vishal Sehgal | Co-founder & Director | |
Key Business Highlights of LAVA International Mobile & Lava Share Price
- India is 2nd largest mobile phone market by volume with penetration level of 52% and feature phones account for the half-of total sales. Lava remains the most preferred Indian brand in both feature phone and entry level smartphone category in the domestic market.
- End-to-End mobile handset manufacturing capabilities with in-house design, research and development division.
- Profitable business with negligible debt. The company constantly increased its revenues during the past 3 years and the current ratio remained above 2.5 level.
- Diversified customer base with 70% of revenues from exports to emerging markets of Thailand, Indonesia, Sri Lanka, Nepal, Middle East, Mexico, and Latin America. The company is growing by organic growth and through strategic acquisitions in its key foreign markets.
Ratio
| Ratio | FY22 | FY21 |
|---|---|---|
| No of o/s shares | 541550388 | 125466902 |
| Face Value | ₹ 5 per share | ₹10 per share |
| Operating Margin | 4% | 4% |
| Net Profit Margin | 3% | 3% |
| Return on Equity | 8% | 11% |
| Debt-Equity | 0.14 | 0.06 |
| Current Ratio | 2.58 | 2.74 |
| Dividend Payout | 0% | 0% |
Note:- Dividend payout = Total Dividend/Net Income.
It indicates, how much % of its Net Income, the company is paying out as dividend to its Shareholders.
Financial Highlights
| Particulars | 2021-22 | 2020-21 | 2019-20 | 2018-19 | 2017-18 |
|---|---|---|---|---|---|
| Total Income (₹ Crores) | 5898.01 | 5523.68 | 5282.45 | 5110.97 | 4832.23 |
| PAT (₹ Crores) | 186.87 | 172.61 | 107.76 | 73.18 | 54.59 |
| Basic EPS | 3.54 | 3.46 | 2.16 | 5.86 | 4.61 |
| Diluted EPS | 3.25 | 3.15 | 1.97 | 5.61 | 4.51 |
| Book Value per Share (₹) | 42.26 | 126.66 | 112.32 | 100.13 | 93.31 |
| Equity (₹ Crores) | 2,288.45 | 1,589.16 | 1,408.11 | 1,255.33 | 1,169.81 |
Note– During the year 2021-22, company made following changes in the equity share capital.
- 1,913,695 equity shares of Rs.10 each were allotted on right shares basis at a premium of Rs. 523 per share.
- 175,828 CCPS were converted into 15,28,834 equity shares of Rs. 10 each at a premium of Rs. 1.5 per share.
- Company undertook a stock split of one existing equity share of Rs. 10 each into two fully paid up equity shares of Rs. 5 each. As a result, the authorised number of equity shares have been increased.
- Company issued and allotted fully paid-up 256,618,862 “bonus shares” at par in proportion of 1:1, fully paid up equity share of Rs. 5 each.
- 27,888,492 New equity shares being issues at face value of Rs. 5 each.
Financial Charts
Historical Chart
Shareholding Pattern
Peer Comparison
| Company | Market Cap (₹ Crores) | Profitability Margin (%) | ROCE (%) | ROE (%) | D/E Ratio | P/E Ratio | P/B Ratio | Book Value per Share (₹) |
|---|---|---|---|---|---|---|---|---|
| LAVA International Ltd | 7852 | 3% | 10% | 8% | 0.14 | 40.96 | 3.43 | 42.26 |
| Prabhat Technologies Ltd | 347 | -50% | -10% | -3% | 1.28 | 0.00 | 10.64 | 29.61 |
| HFCL Ltd | 11462 | 7% | 21% | 11% | 0.26 | 33.07 | 3.87 | 20.50 |
Media Updates
“Lava becomes first Indian brand to launch 5G smartphone”
Home-grown mobile phone company Lava International has become the first Indian brand to launch 5G smartphones for domestic consumers. The smartphone launched under the brand name ‘Agni’ has been developed by Lava in India and is getting manufactured at its plant in Noida, Uttar Pradesh.
Read more:
Lava International rings IPO bell, filed DRHP with SEBI and consolidated growth up by 60%.
Frequently Asked Questions
The buying and selling of unlisted shares, and pre-IPO shares is fully legal and valid.
The procedure to buy the Lava shares is fairly simple. Once you have settled on the price and quantity of the transaction, you would have to transfer the funds into the bank account of the seller. Once the funds are transferred and transaction details are shared with the seller, your demat account will be credited with the shares either on the same day of the fund transfer or before the end of the next working day.
In the secondary market, the transactions related to unlisted shares take place with the existing owners of the shares who are generally the employees or existing investors in the company. The company itself is not directly involved.
The Lava shares will get credited either the same day or before the end of the next working day when you transfer the funds into our bank account.
The minimum lot size varies on the basis of market conditions and demand and supply factors. To know the current lot size for Lava, please visit the stock page on our website: www.delistedstocks.in/current-offerings/lava-international-limited/
There are many factors which influence the pricing of unlisted shares. Apart from the supply and demand factors, the latest transactions happened on the same stock, last funding round of the company, and valuation level of companies of the similar size affect the pricing of the unlisted shares.
Once the selling price and quantity of shares is agreed with us, we will provide you with an UTR (Unique Transaction Reference) number to transfer the shares. Once you have transferred the shares into our company’s demat account, funds are released into your bank account within 24 hours or before the end of the next working day of the transfer of the shares.
If your holding period is less than 2 years, then such income is treated as business income and liable to get taxed as per tax slab of the investor. If your holding period is more than 2 years, then your profits would be subject to long-term capital gains tax. The current short-term capital gain tax rate is 20% after indexation.
The trading in unlisted shares is governed by Securities & Contract (Regulation) Act, which comes under the preview of SEBI. The SEBI regulations become applicable when the stocks of the company get listed on the stock exchange. There is a minimum lock-in period of 6 months for pre-IPO investors.
The major risk associated with investing in unlisted stocks is the liquidity risk. The possible exit route for investors is either to sell to another investor or wait till the company gets listed on the stock exchange.
Yes, NRI’s can also buy and sell Lava shares just like domestic investors. But their investment is on a non-repatriable basis.