boAt Files IPO Papers Via Confidential Filing

Now, boAt Unveils Smartwatch That Comes With Built-in Maps and Turn By Turn Navigation

SUMMARY

Imagine Marketing, the parent of wearables and audio brand boAt, has filed the draft papers for its IPO via the confidential filing route, the company said in a notice

boAt earlier filed for an IPO in January 2022 with an aim to raise INR 2,000 Cr. The offering included a fresh issue of INR 900 Cr and an offer for sale (OFS) of INR 1,100 Cr by existing shareholders

The company managed to reduce its net loss by over 38% year-on-year to INR 79.7 Cr in FY24, its revenue declined over 7% to INR 3,117.7 Cr from INR 3,376.8 Cr in FY23

Imagine Marketing, the parent of wearables and audio brand boAt, has filed the draft papers for its IPO via the confidential filing route.

The filing has been made under SEBI’s confidential pre-filing route, the company said in a notice, as per news agency PTI. It added that the submission of the pre-filed draft papers does not guarantee it will proceed with the IPO.

This is the company’s second attempt at going public.

boAt earlier filed for an IPO in January 2022 with an aim to raise INR 2,000 Cr. The offering included a fresh issue of INR 900 Cr and an offer for sale (OFS) of INR 1,100 Cr by existing shareholders. However, it shelved the plan amid volatile market conditions and weak investor sentiment towards new-age tech and D2C brands.

Now the company is said to be eyeing INR 500 Cr IPO at a valuation of over $1.5 Bn. It has roped in ICICI Securities, Goldman Sachs, JM Financial and Nomura as the lead bankers for its public issue.

boAt’s Stagnating Revenue

Since its last attempt, boAt has faced multiple challenges, including a decline in demand for its products due to increasing competition from non-branded products.

Besides, the Indian wearables space has seen intense price wars, with rivals like Noise, Fire-Boltt, and global players pushing aggressively for market share.

Notably, like many other startups, boAt had to navigate a tough fundraising environment in 2023 as well. In the financial year ended March 2023 (FY23), boAt slipped into the red for the first time. It cited investments in smartwatch expansion and localisation under its ‘Make in India’ initiative for this.

As of 2023, about 70-75% of the company’s products were made in India.

While the company managed to reduce its net loss by over 38% year-on-year to INR 79.7 Cr in FY24, its revenue declined over 7% to INR 3,117.7 Cr from INR 3,376.8 Cr in FY23.

Revenue from international markets collapsed, plunging nearly 89% to INR 13.8 Cr in FY24 from INR 122.6 Cr. Domestic sales declined to INR 3,101.2 Cr from INR 3,239 Cr a year earlier.

In June last year, cofounder and CEO Sameer Mehta said that the company expected to return to profitability in FY25 and was aiming for a INR 2,000 Cr IPO within the next 12–18 months.