Aman Gupta-led boAt’s parent company Imagine Marketing has filed draft red herring prospectus (DRHP) papers with Stock market regulatory body SEBI to raise upto Rs 2,000 crore through an initial public offering (IPO).
According to DRHP papers, The proposed IPO will consist of a fresh issue of shares worth up to Rs 900 crore and an offer for sale (OFS) of shares worth up to Rs 1,100 crore. BoAt’s existing investor South Lake Investment will sell shares worth up to Rs 800 crore in the IPO. While both Sameer Gupta (Co-Founder & CEO) and Aman Gupta (Co-Founder & CMO) will be selling shares worth Rs 150 crore each.
With this fundraise, The New Delhi-headquartered firm will focus on repaying and prepaying its debt. The prepayment will assist the company in maintaining a favorable debt to equity ratio and enable utilization of internal accruals for further investment in business growth and expansion, the company said in DRHP papers.
Axis Capital, BofA Securities, Credit Suisse Securities, ICICI Securities are the book running lead managers for Imagine Marketing’s initial share sale. As per its latest financials, boAt has grown its operating revenue at a CAGR of 141% from FY19 to FY21, with a net profit of Rs 78 crore.
BoAt offers a variety of low-cost consumer electronics items, including earphones, Bluetooth headphones, speakers, and smartwatches. In 2021, The company had raised roughly Rs 800 crore in funding from Warburg Pincus and Qualcomm Ventures.
In addition, it has also raised funds from top investment firms — InnoVen Capital, Navi Technologies, and Fireside Ventures. So far, the company has made two acquisitions — Singapore-based KaHa Pte (acquired in 2020), and New Delhi-based TAGG (acquired in 2022).
The boAt has consistently broken barriers in a sector dominated by proven global brands as a digitally native brand in India, putting Indian brands on the global map. In addition to strengthening its position in the Indian market, boAt has risen to become the world’s fifth-largest wearable brand, according to IDC’s latest Worldwide Quarterly Device Tracker report (4Q20).
JBL, Bose, Samsung, Realme, OnePlus, and Palred are among the company’s competitors. Prominent sports figures such as Rishabh Pant, Hardik Pandya, KL Rahul, Kiara Advani, Prithvi Shaw, and Shikhar Dhawan have been served as its brand ambassadors.