boAt’s Parent Imagine Marketing Files for IPO Papers via Confidential Route

Imagine Marketing, the parent company of popular electronics brand boAt, has officially filed its draft red herring prospectus (DRHP) for an Initial Public Offering (IPO). The filing has been done through the confidential pre-filing route with the Securities and Exchange Board of India (SEBI). The company is taking this strategic step to go public and raise funds for expansion.

boAt, known for affordable audio products and wearables, has become one of India’s fastest-growing consumer tech brands. Founded by Aman Gupta and Sameer Mehta, the brand has built a strong presence among young consumers in India.

boAt Chooses Confidential Pre-Filing Route

The confidential filing option, introduced by SEBI in 2022, allows companies to submit IPO papers without immediate public disclosure. This route helps companies test market sentiment and make changes to their offer based on SEBI’s feedback before going public.

Imagine Marketing had earlier filed draft IPO papers in 2022 for an INR 2,000 crore offering. However, that plan was put on hold due to market volatility. This time, the company is reapproaching the public markets with a revised strategy, taking advantage of the flexibility of the pre-filing process.

The confidential route is gaining popularity among startups and tech firms. It offers more privacy and better planning before a full-scale listing.

boAt’s Growth and IPO Plans

boAt has grown pretty fast in recent years. It is one of the top audio brands in India and has achieved significant global recognition. According to the International Data Corporation (IDC) Q3 2023 report, boAt ranked second in the world for wearable device shipments, behind only Apple. It outperformed global brands like Samsung, Xiaomi, and Huawei in volume.

In FY24, boAt’s operating revenue stood at INR 3,117.7 crore, down from INR 3,376.8 crore in FY23. Despite the drop, the company reduced its net loss to INR 79.7 crore in FY24 from INR 129.4 crore in FY23 by lowering its total expenses.

Imagine Marketing plans to use IPO proceeds for expanding its product portfolio, investing in research and development, and strengthening its supply chain. The listing will also help in improving brand value and reaching more customers.

The company has backing from major investors like Warburg Pincus and Qualcomm Ventures. A successful IPO could help boost its market position and open doors for international growth.

Final Thoughts

The IPO move by Imagine Marketing marks a key milestone for the boAt brand. With strong customer demand, investor backing, and a growing product base, the company seems well-positioned for public markets. If approved by SEBI, the IPO could be one of the most-watched listings of the year.

boAt Success Story: How It Became the World’s 5th Largest Wearable Brand | Valuation | Business Model | IPO | Funding

boAt is a Gurgaon-based company founded by Aman Gupta and Sameer Mehta in 2016. Discover more about boAt’s business model, founders, valuation, startup story, origin country, acquisitions, IPO, funding, logo, and more.

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