The mobile manufacturer Lava Mobiles is planning to raise Rs 3 billion through stake sale to private equity (PE) firms. The company intends to divest 20 per cent stake to PE players. The company will use the funds to expand business in the emerging market and for meeting its rising working capital.
The company has reportedly attracted interest from six PE players but is looking to sell stake to only two investors. At present, the company is valued at about $0.5 billion and is in the process of short listing potential investors.
Other mobile phone vendors like Micromax and Karbonn Mobiles have also been planning to secure PE investments to expand their operations in the emerging markets.
