Important dates with respect to IPO allotment and listing
IPO Open Date
To be announced
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.
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.
|Financial Year||Total Revenue in Crores||Profit After Tax in Crores|
|FY 2021 (as of 30 September 2021)||Rs. 1,313||Rs. 86|
|FY 2020 (as of 31 March 2020)||Rs. 609||Rs. 47|
|FY 2019 (as of 31 March 2019)||Rs. 225||Rs. 8|
Know before investing
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.
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.
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.
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