BoAt is preparing to launch its IPO. The Consumer Electronics company has Filed a DRHP(Draft Red Herring Prospectus) with SEBI. Boat IPO ₹2,000 crores, with ₹900 crores coming from a fresh issue of equity shares and ₹1,100 crores from an offer for sale by existing investors.
Let’s explore various aspects of BoAt IPO from an investor’s point of view:
BoAt IPO Details
BoAt IPO Price Band: Boat IPO is a book-built issue which expected to be announced near the IPO date. When the IPO opens, interested investors can choose the price given within the price band to apply for an IPO.
BoAt IPO Listing Date: Boat’s IPO is expected to be in the last week of Jan 2025. As of now, the open date and close date are not yet finalized.
BoAt IPO Issue Size: Boat aims to raise ₹2000 crores. This will include an offer for sale of about Rs. 1,100 crores and a fresh issue equity share sale of Rs. 900 crores.
BoAt IPO-About The Company
Founded in 2013, Imagine Marketing (boAt) is a digital-first consumer products company and one of the largest Indian digital-first brands in terms of revenue from operations for the financial year 2021.
Boat’s story began when founders Aman Gupta and Sameer Gupta observed a gap in the audio sector. They found that good-quality audio products were expensive while inexpensive ones were not of good quality.
The business began by launching Apple phone chargers since the original chargers were quite expensive and breakable. Their chargers performed quite well and were inexpensive. Gradually, the brand entered the audio market by introducing exclusive headphones and earphones.
Boat is a market leader in audio gadget segments. With Founder Aman Gupta’s presence in Shark Tank, Boat has got a lot of brand visibility.
BoAt Financial Performance
Source: Trading View
- Revenue: Operating revenue decreased slightly by 5% to ₹3,121.6 crore, down from ₹3,284 crore in FY23.
- Profit/Loss: Losses were significantly reduced by 47%, falling to ₹53.5 crore from ₹101 crore in FY23. This improvement was driven by reduced expenses, including a 61% drop in inventory costs.
- Cost Management: Total expenses declined by 6%, supported by reductions in finance costs and stock procurement expenses, despite a challenging market with declining average selling prices in the wearables segment.
- Business Segments: The audio segment grew by 5%, contributing strongly to revenue stability. Wearables faced pricing pressures, contributing to margin challenges.
Also Read: OYO IPO Details – Open Date, Price Band, GMP
A Quick Look At BoAt IPO’s Risk & Strengths
Risk Factor
- Over dependence on marketing: Imagine Marketing Limited highly relies on the strength and brand image of its flagship brand for its success. Factors like unsuccessful publicity attempts, brand ambassador controversy,y and poor product introduction can hurt the brand image of boAt and Imagine Marketing Limited.
- Third-Party Manufacturing Dependence: This company relies on a large number of third-party contractual manufacturers and suppliers for manufacturing products under this brand. Any shortage of suppliers or slowdown of workforce can adversely affect this company’s operation and cash flow.
Strengths
- This brand is India’s largest digital-first brand that holds a predominant market position across several fast-growing product categories.
- This company is run by professional founders with deep-rooted experience, expertise and track record in the consumer product industry.
- Its digital-first platform allows the company to segment its target audience into various categories and cater to their demands accordingly. This allows the company to build a better brand image by customer-oriented market positioning.
- boAt, the flagship company of Imagine Marketing is a popular consumer brand today with a clear value proposition.
Possible To Buy BoAt Shares Before IPO?
Currently, Boat is not listed in the stock market. However, investors can buy pre-IPO shares and own BoAt shares before they get traded in the listed market.
Interested Investors can buy Boat Unlisted Shares by clicking here. Investors can check the details of other pre-IPO shares at Stockify.
BoAt IPO FAQs
Q1: Is Boat getting listed in the stock market?
Boat has filed its DRHP(Draft Red Herring Prospectus) with SEBI and it is estimated to be listed by Jan 25.
Q2: Why was boAt IPO cancelled?
Boat was going to launch an IPO in 2022 but withdrew its application citing market conditions and raised $60 million in private capital through convertible preferred stocks notes from existing investor Warburg Pincus and new investor Malabar Investments.
Q3: Is it legal to buy unlisted shares of Boat in India?
Yes, this is 100% legal and safe to buy unlisted shares of BoAt. However, this is applicable when you buy Boat Unlisted Shares from reliable and known unlisted share dealers. You can request a quote or trade online at Stockify, we are ready to assist you.
