Aman Gupta-led boAt parent files draft papers for IPO via confidential pre-filing route

Imagine Marketing, the parent company of wearables brand boAt, has filed draft papers with the Securities and Exchange Board of India (SEBI) for an IPO through a confidential pre-filing route.

This approach enables the company to keep certain details of its draft red herring prospectus private until later stages. 

The company has filed the pre-filed DRHP with SEBI and stock exchanges under ICDR (Issue of Capital and Disclosure Requirements) Regulations in relation to the proposed IPO of its equity shares on the mainboard of the stock exchanges, according to a public notice.

However, it clarified that pre-filing DRHP does not guarantee the company will go ahead with the maiden public offering.

Second attempt at going public  

This is Imagine Marketing's second try at an IPO. In January 2022, it filed draft papers for a proposed Rs 2,000 crore offering, which included a fresh issue worth Rs 900 crore and an offer for sale valued at Rs 1,100 crore.

The company, founded in 2013 by Aman Gupta and Sameer Mehta, is known for its audio gear, smart wearables and mobile accessories under the boAt brand.

For FY24, the Aman Gupta-led brand reported a 5% decline in revenue, falling from Rs 3,284.7 crore to Rs 3,121.6 crore. It also recorded a 48% reduction in net loss, bringing it down to Rs 70.8 crore.

Growing trend of confidential filings  

Several Indian companies have been opting for the confidential pre-filing route recently. Tata Capital and edtech firm PhysicsWallah both followed this process, while last year, food delivery major Swiggy and retail chain Vishal Mega Mart completed successful IPOs after filing in private.

OYO once took this path but decided not to go through with its public issue. Tata Play was the first in India to try confidential filing in late 2022 and even received regulatory clearance, although it later withdrew its plan to go public.