Lava to raise $90m from GEM for sub-$150 segment push

New Delhi: Domestic handsets maker Lava International on Tuesday said it will raise $90 million (Rs 630 crore) from GEM Global Yield Fund to invest in research and development (R&D) with the aim of emerging as a market leader in the sub-$150 price segment.

GEM group will make the investment over the next 36 months through a share subscription facility, which will allow the company to sell US depositary receipts to the fund house in exchange for drawing down available funds, Lava said in a statement. “The company will use the funds to strengthen its business by funding its research, development and business expansion activities, with the objective of becoming a market leader in the sub-$150 cellular phone segment,” Lava said.