boAt IPO

boAt is an India-based electronics brand founded in November 2013. This company is known for marketing audio-focused smart wearables and accessories. The business is carried under a legal name, Imagine Marketing Services Private Limited, incorporated in 2013, while boAt is the household name.

boAt designs and markets smartwatches and audio-focused accessories, like earphones, travel chargers, stereo headphones, home audio equipment, wireless speakers, premium rugged cables, and a comprehensive collection of mobile phone accessories. Furthermore, boAt markets its products through public events and collaborations with various influencers and sports teams. The company is now all set to expand its market by reaching a valuation of $1.5 to $2 billion through IPO (Initial Public Offering).

boAt IPO Objectives

Some of the objectives that boAt wishes to fulfil with the proceeds from this IPO are listed below :

- Expand presence by indulging in a wide range of lifestyle categories.
- To continue investing and take the brand to greater heights.
- Increase marketing capabilities to generate a greater consumer base.
- Build robust design, research, development and technical capabilities

Why should you invest in boAt IPO?

Here are the reasons why an individual should subscribe to the boAt IPO :

• The company plans to expand into offline markets and Tier 2+ cities and towns in India, leveraging existing distributors and their relationships with local retailers. boAt will also expand its online sales reach by increasing sales volume on other marketplaces and channels, such as the online shopping website Nykaa, the Tata CLiQ store and Myntra.
• boAt is a direct-to-customer (D2C) company and holds a high rank in the hearables category and second in the wearables category. Digital channels and marketplaces account for more than 85 per cent of the company’s total sales, and it maintains its position as the leading brand on those marketplaces.
• In the interest of improving its products, the company has sought out relationships with component suppliers like Qualcomm (a shareholder in the parent company), Google, Dolby, and Bharat FIH.
• The company has remained profitable in the last three fiscal years. The highest component of costs for the company continues to be the electronic goods that it resells.
• In FY 21, the company generated Rs. 1.3 billion in revenues with just Rs. 1.7 million invested in plant, property, and equipment. The company leases out offices and warehouses instead of purchasing them so that capital expenditure remains minimal.
• The business has developed steadily over the years, with a return on capital employed of more than 15 per cent in the last three fiscal years and 66.8 per cent in the most recent fiscal year.

boAt IPO Details

Imagine Marketing Limited, the parent company of boAt, filed a DRHP with SEBI on 26 January 2022 for an IPO of Rs. 2,000 crores. This offer includes a 900 crores fresh issue of equity shares and an offer for sale amounting to Rs. 1,100 crores as described in the DRHP. Further, the company is looking to raise Rs. 180 crores through a pre-IPO placement. So far, the company is waiting for SEBI's approval before it can float the IPO in the market.