You could be a fitness fanatic or a music lover but its hard to miss boAt wearables in your daily kit. What’s now music to the company is that the sound of boAt is about to echo across Dalal Street. The parent company of the lifestyle electronics brand, Imagine Marketing, has received the market regulator SEBI’s approval to launch its much-awaited initial public offering (IPO). For investors, this marks the second time boAt is steering towards a stock market debut, but this round could be different.
So, what makes the boAt IPO worth a keenly anticipated one? Here are 5 key factors investors should watch out for this upcoming IPO –
boAt IPO: Second time lucky?
This isn’t boAt’s first attempt at going public. Back in 2022, the company had filed for a Rs 2,000 crore IPO but decided to pull back due to volatile market conditions. Instead, it raised $60 million through private investors to fund its expansion. Now, with the latest SEBI’s approval, the company is ready to sail through the primary market.
boAt IPO: The size of the offering
The upcoming IPO is expected to be sizeable, targeting a valuation of around Rs 13,000 crore. The share sale will include a fresh issue of Rs 900 crore and an offer-for-sale (OFS) of up to Rs 1,100 crore by existing investors.
boAt IPO: Why the confidential route matters
BoAt has chosen SEBI’s confidential pre-filing route for its IPO. This is a newer option many Indian companies are now exploring.
This kind of confidential DRHP filing allows more flexibility. As per this, the firms can take up to 18 months from SEBI’s approval to launch the IPO, compared to 12 months under the traditional route.
boAt IPO: Issue objective
According to the company, proceeds from the fresh issue will be used to repay debt, while the rest will go toward expanding business operations, investing in research and development, improving product quality, and covering general corporate needs.
boAt IPO: About the company
Founded in 2013 by Aman Gupta and Sameer Mehta, boAt made its entry by mixing affordability with sharp design and youth-centric marketing.
From headphones to smartwatches and personal grooming products, the brand now dominates India’s wearables market with a 26.7% share as of Q22024.
The book-running lead managers for the IPO include ICICI Securities, Goldman Sachs, and Nomura.