Audio and wearables company Imagine Marketing, which operates the brand boAt, has filed an updated draft red herring prospectus (UDRHP) with the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO) of Rs 1,500 crore.
The IPO comprises a fresh issue of equity shares aggregating Rs 500 crore and an offer for sale (OFS) of RS 1,000 crore by existing shareholders, including investors and co-founders, according to the UDRHP.
Private equity major South Lake Investment (Warburg Pincus), the largest shareholder in the company with a 39.35% stake, will offload shares worth Rs 500 crore, accounting for half of the total OFS. Other investors participating in the share sale include Fireside Ventures, which will sell shares worth Rs 150 crore, and Qualcomm Ventures, which will divest shares worth Rs 50 crore.
Co-founders are also set to pare their holdings, with Sameer Mehta selling shares worth Rs 75 crore, while Aman Gupta, also the company’s chief marketing officer, will offload shares aggregating Rs 225 crore. As on the date of the UDRHP, Mehta holds a 24.75% stake and Gupta holds 24.76% in the company. Other investors in boAt include Malabar Select Fund with a 1.20% stake.
The company plans to utilise the fresh issue proceeds for working capital requirements (Rs 225 crore), brand building and marketing activities (Rs 150 crore), and general corporate purposes.