boAt IPO – Details

Imagine Marketing Limited, the parent company of boAt, filed a DRHP with SEBI on 26 January 2022 for an IPO of Rs. 2,000 crores. This offer includes a 900 crores fresh issue of equity shares and an offer for sale amounting to Rs. 1,100 crores as described in the DRHP. Further, the company is looking to raise Rs. 180 crores through a pre-IPO placement. So far, the company is waiting for SEBI's approval before it can float the IPO in the market.

The chart below furnishes the other relevant details related to this offering:

Issue Type

Book Built

Listing at

BSE & NSE

Price Band

To be updated

Minimum Order Quantity

To be updated

Face Value

To be updated

Market Lot

To be updated

Issue Type

Book Built

Listing at

BSE & NSE

Price Band

To be updated

Minimum Order Quantity

To be updated

Face Value

To be updated

Market Lot

To be updated

Listing at NSE, BSE

boAt IPO Important Dates

IPO Open Date To be updated
IPO Close Date To be updated
Basis of Allotment Publication Date To be updated
Initiation Of Refunds To be updated
Credit Of Shares To
Demat Account
To be updated
Minimum Order Quantity To be updated

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About boAt (Imagine Marketing Services Pvt. Ltd.)

boAt is an India-based electronics brand founded in November 2013. This company is known for marketing audio-focused smart wearables and accessories. The business is carried under a legal name, Imagine Marketing Services Private Limited, incorporated in 2013, while boAt is the household name.

boAt designs and markets smartwatches and audio-focused accessories, like earphones, travel chargers, stereo headphones, home audio equipment, wireless speakers, premium rugged cables, and a comprehensive collection of mobile phone accessories. Furthermore, boAt markets its products through public events and collaborations with various influencers and sports teams. The company is now all set to expand its market by reaching a valuation of $1.5 to $2 billion through IPO (Initial Public Offering).

boAt IPO Objectives

Some of the objectives that boAt wishes to fulfil with the proceeds from this IPO are listed below :

- Expand presence by indulging in a wide range of lifestyle categories.
- To continue investing and take the brand to greater heights.
- Increase marketing capabilities to generate a greater consumer base.
- Build robust design, research, development and technical capabilities

Why should you invest in boAt IPO?

Here are the reasons why an individual should subscribe to the boAt IPO :

  • The company plans to expand into offline markets and Tier 2+ cities and towns in India, leveraging existing distributors and their relationships with local retailers. boAt will also expand its online sales reach by increasing sales volume on other marketplaces and channels, such as the online shopping website Nykaa, the Tata CLiQ store and Myntra.
  • boAt is a direct-to-customer (D2C) company and holds a high rank in the hearables category and second in the wearables category. Digital channels and marketplaces account for more than 85 per cent of the company’s total sales, and it maintains its position as the leading brand on those marketplaces.
  • In the interest of improving its products, the company has sought out relationships with component suppliers like Qualcomm (a shareholder in the parent company), Google, Dolby, and Bharat FIH.
  • The company has remained profitable in the last three fiscal years. The highest component of costs for the company continues to be the electronic goods that it resells.
  • In FY 21, the company generated Rs. 1.3 billion in revenues with just Rs. 1.7 million invested in plant, property, and equipment. The company leases out offices and warehouses instead of purchasing them so that capital expenditure remains minimal.
  • The business has developed steadily over the years, with a return on capital employed of more than 15 per cent in the last three fiscal years and 66.8 per cent in the most recent fiscal year.

Financial highlights

According to the details mentioned in the DRHP submitted to the market regulator SEBI (Securities and Exchange Board of India), the financial highlights of boAt over the last three fiscal years are as follows :

Financial Year Total Assets in Crores Total Revenue in Crores Profit After Tax in Crores
FY 2021 (as of 30 September 2021) Rs. 2,093.73 Rs. 1,313 Rs. 86
FY 2020 (as of 31 March 2020) Rs. 190.50 Rs. 609 Rs. 47
FY 2019 (as of 31 March 2019) Rs. 83.93 Rs. 225 Rs.8

How to apply for boAt IPO?

There are primarily two routes through which you can apply for a boAt IPO. They are explained in brief below:

Demat Account

Open a Demat account on the Angel One platform – it is free. By doing so, investors can bid for boAt shares at IPO. The process involves registering on the platform, signing in and feeding in your details. Once you have been given access to the platform, you can bid for shares on the issue date.

UPI

To participate in the boAt IPO, you must first link your Unique Private Identification (UPI) with your bank account and connect it to the Angel One platform. Once you complete these steps, you will be eligible to subscribe to boAt IPO.

boAt IPO - Noteworthy Highlights

The following are the noteworthy highlights for interested investors to consider:

  • boAt plans to build on its market leadership positions in the fast-growing categories where it already leads.

  • The company is exploring opportunities to expand its presence into product categories adjacent to its core business, either through its existing brands or through acquisitions of new brands.

  • This D2C Company will continue to invest in building the value of its brand and its brand communities in order to enhance consumer engagement.

  • To reduce its exposure to production delays and cost overruns, the company has diversified its supplier and contract manufacturer network and invested in its "Make in India" initiative.

  • boAt invests in its research and development capabilities and relationships with technology providers so that it can develop new products.

  • The company intends to expand into international markets in the near future, focusing primarily on audio and wearables.

boAt IPO - SWOT Analysis

Strengths

  • boAt is one of the largest digital-first brands in India, that holds leading market positions.
  • It is a consumer brand with a clear value proposition and a strong market position.
  • Distinctive marketing capabilities can generate greater consumer engagement and high sales levels effectively.
  • Backed by real-time feedback from sales channels and customers, the company can develop products on a timely basis and stock those that are most in-demand.
  • The in-house design team of boAt Labs has worked on several projects aimed at improving the products of the company. boAt says that this has helped it to create a product line tailored to the Indian market.

Weaknesses

  • The company has to rely on several third-party suppliers to produce its products.
  • Similarly, the company has to rely on its relationship with digital marketplaces and offline retailers.
  • The gross margins can be affected by the occurrence of pricing pressures from marketplaces and consumers.

Opportunities

  • Depending on the industry, entering international markets and new geographies can be a significant source of growth for businesses.
  • Increased demand for smart wearables is expected to drive revenue.

Threats

  • boAt suffers from a lack of brand loyalty among its customers. New brands offering quality products at similar or lower prices might take away market share from this company.
  • The visibility of the brand is heavily impacted by algorithms on online marketplaces and by the ability of the company to secure promotions with these venues. Revenue for the company will be hurt if it loses its presence in these venues or experiences major issues with them.
  • The majority of the products of this company are manufactured overseas, with recent shifts to India and Vietnam. Supply-chain issues, foreign currency swings and changes in import duties remain risks to the company.

Competitive Analysis: Market Peers

There are no public companies in India that are similar to the company we are examining. So, it is inappropriate to compare its performance against those firms.

boAt IPO FAQs

Is boAt an Indian company?

Yes, boAt is an Indian electronics brand that markets smart gears and audio-focused wearables. The business is undertaken by Imagine Marketing Services Private Limited, which was incorporated by co-founders Aman Gupta and Sameer Ashok Mehta. Though the products are manufactured in China, the designs are crafted in India.

Is boAt made in China?

So far, 10% of products from boAt are churned out in India, and the remaining 90% is manufactured in China and Vietnam. Further, after a tie-up with Qualcomm Ventures, the company is set to invest in the ‘Make in India’ initiative, shifting its manufacturing base from China by 2024.

Is boAt a listed company?

boAt has become the first D2C Indian brand that has headed for a public listing. As per the reports, Imagine Marketing Limited, the parent company of boAt, has submitted a Draft Red Herring Prospectus with the Securities and Exchange Board of India. The company now awaits approval from SEBI to float the IPO.

What is the valuation of BoAt?

After raising Rs. 50 crores from a tie-up with Qualcomm ventures in April 2021, the valuation stood at Rs. 2,200 crores. Further, the company has made a move to float an IPO, eyeing a 5 to 6 times higher valuation over its revenue in this fiscal year.

Is boAt profitable company?

Since its incorporation in the year 2015, the brand's annual profits have only surged. In the financial year 2021, the company recorded a profit surge of 61%, from Rs. 48.8 crores in FY 20 to Rs. 78.6 crores in FY 21. Regardless of dropped EBITDA margins by 237 BPS, calculated to 8.34% during FY 21 from 10.71% reflected in FY 20, the profits have seen a massive hike.

Who are the investors in boAt?

Qualcomm Ventures, Warburg Pincus, and InnoVen Capital are some of the lead investors in boAt.

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