Lava holds up IPO, raising funds via rights issue at 30% premium

NEW DELHI: Skipping a primary market offering, phonemaker Lava International is trying to raise funds via a rights issue, as it seeks to capitalise on the incentives being offered by the government to boost local manufacturing of electronics.

“The company’s board of directors in their meeting held on April 30, 2021 has accorded approval to the issue and allotment of equity shares by way of rights issues to the existing equity shareholders of the company as on April 23, 2021, the record dates, pursuant to 62(1)(a) and other applicable provisions of the Companies Act 2013, if any, read with the rules framed thereunder,” the company wrote to its equity shareholders.