Three Bankers Join boAT for $300–500 Million IPO

According to reports, boAt, a manufacturer of smartwatches and audio goods, has selected a number of bankers for an IPO that will cost between $300 and $500 million next year.

 According to media sources, ICICI Securities, Goldman Sachs, and Nomura have joined the business as IPO bankers. The report also stated that although final numbers may change closer to the IPO filing, boAt may aim for a valuation of more than $1.5 billion. Regarding the development, boAt has refrained from commenting. 

Second Attempt by the Startups to Launch IPO

It's important to remember that this is the startup's second attempt at an initial public offering. The company submitted its draft red herring prospectus (DRHP) for a public offering of INR 2,000 crore to the Securities and Exchange Board of India (SEBI) in 2022. Cofounder Aman Gupta stated last year that boAt was not in a hurry to pursue an IPO for the "next couple of years," but eventually scrapped the plans. Rather than moving forward, boAt chose to raise $60 million in private funding from new investor Malabar Investments and current investor Warburg Pincus through convertible preferred shares, with a valuation cap of about $1.2 billion.

Roadmap to Launch its IPO

With plans to file for the upcoming fiscal year, the reports also stated that ICICI Securities would serve as the issue's lead banker. The business has chosen four bankers in all. The news coincides with a severe slump in boAt's wearables category, which saw its consolidated operating revenue drop by more than 7% to INR 3,117.7 Cr in the financial year 2023-24 (FY24) from INR 3,376.8 Cr in the previous fiscal year. The wearables segment saw a roughly 40% decline in sales, from INR 910.6 Cr in FY23 to INR 550.3 Cr in the reviewed year. However, revenue for boAt's audio products segment, which makes up the majority of its total sales, increased by just 5% from INR 2,350.8 Cr in FY23 to INR 2,459.2 Cr in FY23.

Nevertheless, boAt was able to reduce its loss in FY24 in spite of the drop in its income. During the year, the net loss of the Aman Gupta-led venture decreased by more than 38% to INR 79.7 Cr, a decrease from INR 129.4 Cr in FY23. Gupta and Sameer Mehta founded boAt in 2015, and it sells speakers, smart watches, headphones, and other items in the broader wearables and audio sectors. It has raised over $177 million in capital to date and is supported by companies including Qualcomm Ventures, Ranveer Singh, and Warburg Pincus, among others. One of the leading brands of audio devices in India, boAt faces competition from industry titans like JBL, Sony, Samsung, OnePlus, Noise, and a number of up-and-coming new-age businesses.

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