Powered by the latest Android KitKat, the handset will be priced under Rs 8,000.
The device is designed to offer all features that ensure easy multi-tasking and high quality media output with an 8 MP rear camera.
"To add to it, Lava is going to price it aggressively under Rs 8k. Riding on the success of its Iris Pro series, Lava is really upbeat about this offering," the statement said.
Though no specific date of launch was disclosed, the statement said Lava "plans to launch the phone in the next few days" with a pan-India 360-degree marketing campaign.
Currently, only few phones like Nexus 5, Moto X, Moto G and Karbonn Titanium Hexa offer the KitKat operating system and most Android devices are running on the previous JellyBean generation.
Over the last few days, a slew of smartphones have been announced in the sub-Rs 12,000 category. From Moto G to the latest Lumia 630, handset makers are lining up devices at affordable price points.
Smartphone sales in the country grew almost three-fold to over 44 million in 2013, buoyed by a strong uptake of affordable devices made by local firms such as Micromax and Karbonn, according to research firm IDC.
While Samsung led the category with 38 percent share, Micromax had 16 percent, Karbonn (10 percent), Sony (5 percent) and Lava (4.7 percent) in the fourth quarter of 2013.
India was one of the fastest-growing markets worldwide in terms of smartphone adoption in 2013, IDC data showed.