boAt parent files updated DRHP with Sebi; cuts issue size to ₹1,500 crore

Imagine Marketing, parent company of boAt, has reduced its initial public offering (IPO) size to ₹1,500 crore from the earlier ₹2,000 crore

boAt IPO: Imagine Marketing, operating primarily under the 'boAt' brand, has filed its updated Draft Red Herring Prospectus (DRHP) with market regulator Securities and Exchange Board of India (Sebi). 

 

According to the updated prospectus, the company has reduced its initial public offering (IPO) size to ₹1,500 crore from the earlier ₹2,000 crore. The proposed initial public offering (IPO) comprises a total issue of equity shares of face value of ₹1 each aggregating up to ₹1,500 crore, with a fresh issue of equity shares aggregating to ₹500 crore and an offer for sale (OFS) of equity shares aggregating to ₹1,000 crore. 

 

Under the OFS, Sameer Ashok Mehta (₹75 crore), Aman Gupta (₹225 crore), and South Lake Investment Ltd (₹500 crore) are the promoter selling shareholders, while Fireside Ventures Investment Fund-I (₹150 crore) and Qualcomm Ventures LLC (₹50 crore) are the individual selling shareholders.

 

According to the DRHP, the company proposes to utilise ₹225 crore from the net fresh issue proceeds for funding the working capital requirements, ₹150 crore for brand and marketing expenses towards enhancing the awareness and visibility of the products and brand. The remaining funds will be used for general corporate purposes.

 

MUFG Intime India is the registrar of the issue. ICICI Securities, Goldman Sachs (India) Securities, JM Financial, and Nomura Financial Advisory and Securities (India) are the book-running lead managers.

Imagine Marketing financial overview

In the fiscal 2024-25 (FY25), boAt reported total revenue from operations of ₹3,070.38 crore. By product category, the audio segment remained the primary revenue driver, contributing ₹2,586.04 crore or 84.23 per cent of total revenue from operations. The wearables segment accounted for ₹330.41 crore or 10.76 per cent of total revenue, while other products contributed ₹153.93 crore or 5.01 per cent.

 

The company reported a profit of ₹61.08 crore, a turnaround from losses recorded in the previous year. The company achieved an Earnings before interest, tax, depreciation and amortisation (Ebitda) of ₹142.51 crore, and an Ebitda margin of 4.64 per cent.

About Imagine Marketing (boAt)

Launched in 2015, Imagine Marketing operates primarily under the “boAt” brand. The company offers audio, wearables and charging solutions products. According to the Redseer Report, boAt has maintained its position as India’s leading branded personal audio company by volume every year from FY2020 to FY2025. 

 

The company sells its products through online marketplaces, D2C website, and offline retailers and distributors. While it initially began with the audio category, the company has expanded its product mix over the years to enter into adjacent categories, including wearables and charging solutions.