Lava inducts new directors as co-founder Rai moves out; looks at PE raise of Rs 600 cr

Lava Adds New Directors as Co-Founder Rai Leaves; Plans to Raise Rs 600 Crore from Private Equity.

Expert Analysis:

• Board Revamp:

  • Appointed Anupam Srivastava, former BSNL chairman.

  • Appointed Lt. Gen. Ajay Kumar Singh (Retd.), former Lt. Gov of Andaman & Nicobar Islands.

  • Moved out co-founder Hari Om Rai.

• Fundraising Goals: Aims to raise Rs 600 crore through private equity for launching new 5G smartphones.

• Sales and Growth: Achieved 250% growth in 5G device sales last fiscal year with 1.5 million units sold.

• Manufacturing Capacity and Government Support: Lava benefits from the government's PLI scheme and has a manufacturing capacity of 42 million units, aiding in business expansion and new device launches.

• Funding Requirement for Competitive Edge: The company aims to raise Rs 600 crore, crucial for competing against Chinese brands like Vivo, Oppo, Xiaomi, and RealMe.

• Pursuit of Private Equity Investment: Despite facing tough competition, Lava is exploring all funding options and is optimistic about securing private equity investment soon.