India's wearable brand boAt to launch its IPO at $1.4B valuation, says report

World's fifth largest wearable brand BoAt is reportedly planning to launch an initial public offering (IPO) to raise up to Rs 3,500 crore at a valuation of $1.4 billion.

For this, the company's executives met with investment bankers, and the mandate is anticipated to be signed within the next several weeks. According to mint sources, boAt is likely to publish a draught red herring prospectus (DRHP) in the upcoming months and the IPO could launch in early 2022.

Warburg Pincus, Qualcomm Ventures, and Fireside Ventures are among the investors who have invested in boAt. Warburg Pincus is the largest investor in boAt, with a 30% interest, followed by Qualcomm Ventures and Fireside Ventures. The last two investors have combined ownership in boAt of less than 5%.

Aman Gupta and Sameer Mehta founded boAt in 2016. boAt, which is the world's fifth-largest wearable brand, offers a variety of low-cost consumer electronics items, including earphones, Bluetooth headphones, speakers, and smartwatches.

Talking about financials, boAt's witnessed a 196% increase in its sales to Rs 701 crore, while profit increased by 470 percent to Rs 49 crore for the fiscal year 2019-2020.

The company raised roughly Rs 750 crore from Warburg Pincus earlier this year, followed by a Rs 50 crore investment from Qualcomm. In addition, BAC Acquisitions made a Rs 50 crore investment in boAt Lifestyle in 2019.

JBL, Bose, Samsung, Realme, OnePlus, and Palred are among the company's competitors. Prominent sports figures such as Rishabh Pant, Hardik Pandya, KL Rahul, Prithvi Shaw, and Shikhar Dhawan have been served as its brand ambassadors.

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