IPO: boAt's IPO is coming soon, got approval from SEBI, preparations to bring an issue of 2,000 crores..
boAt IPO: Imagine Marketing, the parent company of electronics brand boAt, has taken a big step forward in its preparations to enter the stock market. Market regulator SEBI has approved the company's draft red herring prospectus (DRHP). This news came out from an SEBI document on Tuesday.
Boat is famous for its headphones and smartwatches, and had applied for IPO (Initial Public Offering) confidentially in April. According to reports, this company, backed by Warburg Pincus, is expecting a valuation of Rs 13,000 crore.
The company had filed papers in January 2022
This is Boat's second attempt to enter the stock market. Earlier in January 2022, the company had filed draft papers for an IPO of Rs 2,000 crore. It included new shares worth Rs 900 crore and an offer for sale (OFS) of Rs 1,100 crore. But then, due to the bad market conditions, that plan was postponed.
The company chose the pre-filing option.
Now the company has chosen the confidential pre-filing route, which is becoming popular among many companies in India. In this route, the company does not need to make the information of its draft public in the beginning. This gives the company the freedom to keep its strategy secret and enter the market at the right time.
Details about the company
Imagine Marketing was founded in 2013 by Aman Gupta and Sameer Mehta. This company makes audio products like headphones, smartwatches, personal grooming products, and mobile accessories. The company's brand Boat is very popular among the youth, as it offers good products with stylish designs and affordable prices. This IPO will help the company to further expand its business, repay debt, and invest in research.
The advantage of the confidential pre-filing route is that it gives more flexibility to the companies. In the normal route, it is necessary to bring IPO within 12 months after SEBI's approval, but in this route, companies get 18 months. Also, they can increase or decrease the number of their new shares by 50 percent until the Updated Draft Red Herring Prospectus (UDRHP) stage comes. This method helps companies to formulate a strategy according to the market situation and their needs.
These are the promoters of the company
Talking about the promoters of the company, Aman Gupta is the Co-founder and Whole-time Director & Chief Marketing Officer. According to a CNBC report, he is the head of marketing and brand builder of boAt. Apart from this, Sameer Mehta is the Co-founder and Whole-time Director & Chief Product Officer. Both of them are the original promoters of the company (Imagine Marketing) and have played a big role in the success of the boAt brand.
In 2024, big companies like Swiggy and Vishal Mega Mart also launched their IPOs through this confidential route and were successful. According to Moneycontrol, this move by Boat shows that the company is now preparing to expand its business on a large scale. Market experts believe that this route reduces the pressure on companies to enter the stock market early and gives them a chance to implement their plan in a better way. This IPO of Boat can be a big step for Indian startups.
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