News Digest

04 December 2017
Lava to raise Rs 193 crore from Chinese firm

Lava is raising $30 million (about Rs 193 crore) from an affiliate of state-backed Chinese technology group Tsinghua Holdings, a first move by an Indian handset maker to raise capital in a tough market amid increasing competition from Chinese rivals. The Noida-based company has issued five lakh compulsory convertible preference shares to Hong Kong-based UNIC Memory Technology, an affiliate of Tsinghua Holdings, for the fund-raising, according to company documents filed with the Registrar of Companies. “Consent of the members of the company is hereby accorded to the board of directors to issue and offer 5,00,000 of compulsory convertible preference shares (CCPS) collectively for the INR equivalent of $30 million, each with the face value of Rs 100, and remaining amounts per CCPS being apportioned towards premium, on a preferential basis to UNIC Memory Technology,” the company said in the filing. The company plans to invest the funds in local handset design and manufacturing capabi lities, people aware of the matter said. Lava, which has been displaced from its position among leading smartphone makers by Chinese rivals such as Xiaomi, Oppo and Vivo, is investing in mobile phone design including setting up a mobile phone design centre in India.

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