boAt, the electronic brand, offers us numerous audio-focused products. Their products include, for instance, headphones, earphones, and wireless speakers. Imagine Marketing owns this largest direct-to-consumer brand. The exciting news is that it has filed for an initial public offering (IPO).
Details About The IPO
The boAt has already filed the needed documents with the market regulator Securities Exchange Board of India (SEBI). The draft prospectus showed that the IPO would be up to Rs 2,000 crore.
There will be a new issue of shares worth Rs 900 crores. Additionally, there’ll also be an offer for sale (OFS) of shares of up to ₹1,100 crores.
Credit Suisse Securities, Axis Capital, ICICI Securities, and BoFA Securities are Book Running Lead Managers (BRLM) for the IPO.
Why IPO?
IPO collected money will be used in payment of debts. Apart from that, it will help them maintain an excellent debt-to-equity ratio. Additionally, the company will progress and grow much more with the IPO.
Investors And Their Divestment Plans
Sameer Mehta and Aman Gupta hold 50% shares of the New Delhi-based company. It is expected that they will offer a minor shareholding amount.
Apart from that, the company also has Marquee investors.
Warburg Pincus is the company’s largest stakeholder, with a 36% stake. He will divest shares equaling Rs 700-800 crore in the IPO. Additionally, South Lake Shares has decided to divest shares worth Rs 800 crore.
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Know More About The Brand
In 2013, Imagine Marketing began its journey. Its flagship brand, boAT, an audio and wearable brand, started in 2014.
Over the years, boAt has proved itself. Subsequently, it has become India’s number 1 earwear audio brand and the 5th largest wearables brand globally.
The revenue of boAt grew to Rs 1,531 crore in FY21, and its profit surged by 61 %. The company’s operating revenue grew at a compound annual growth rate (CAGR) of 141% between the period from FY19 and FY21. Hence, the company has maintained its profitability.
BoAt occupies 20% of the wearables market share. According to this D2C company, the wearables market in India will grow more than ten times $2-4 billion by 2025 compared to $200 million in 2018.