Imagine Marketing, the owner of consumer electronics brand boAt, has filed DRHP with markets regulator SEBI for a Rs 2,000-crore IPO. According to the documents, boAt owner Imagine Marketing’s initial public offering will consist of fresh issue of shares worth Rs 900 crore, and offer for sale of upto Rs 1,100 crore of existing shares. boAt co-founders Aman Gupta and Sameer Mehta will dilute their stakes worth Rs 150 crore each in the company, the document added. Additionally, boAt investor South Lake Investment Ltd will also sell shares worth Rs 800 crore, the document said.
boAt has become a household name for earphones, speakers, and headsets. Founded in 2016, boAt, backed by US-based private equity firm Warburg Pincus, is expected to be valued at $1.5-2 billion in the IPO float. It plans to use the funds from raise to prepay debt, according to a report in The Economic Times. Axis Capital, BoFa Securities, Credit Suisse and ICICI Securities are amongst the book running lead managers.
The filing for IPO comes as new age technology firms have seen a mixed response from investors in Indian share markets. Paytm’s parent One 97 Communications Ltd, which listed on the exchange last year witnessed a fresh 52-week low this week. Profit making firm Nykaa, which is listed under the parent company’s name Fsn E-Commerce Ventures Ltd, also saw its shares tank this week mirroring a trend seen in it the US for tech-based value stocks.