Whether a seasonal or retail investor, you must have your eyes set on boAt shares. A giant in India's evolving and booming wearable market, boAt recently declared a halt on its most awaited Initial Public Offering plan. While this might not seem a wise move, boAt has raised $60 million (around ₹500 crores) from private investors amidst the highly volatile stock market.
At Stockify, we analysed all the events in between and figured out the possible impact of this move on boAt shares in the unlisted market. At the time of writing this report, boAt's unlisted share price is ₹760. Scroll down to understand this event by event and what the future holds for boAt investors.
Setting Sail: An Introduction To boAt And Its IPO Twist
Imagine Marketing Ltd's child company, boAt, is the fastest-growing Indian company that primarily deals in wearable products like wireless speakers, earbuds, headphones and smartwatches, which is perhaps the hottest segment on its portfolio.
In line with its growth ambitions and goals to access additional capital for business expansion and development, the company decided to go public and raise ₹2,000 crore. The company had already filed DRHP but then decided to postpone the IPO and raise ₹500 cr from its existing stakeholders instead of a public offering at the same time overdue and expansion plans remain the same.
Journey Through Time: boAt's Voyage Towards IPO
The company's ambitions and motives to raise capital keeps changing. Earlier, the company wanted to raise money to pay its debts and expand. Looking at this decision to withdraw from the IPO, it feels like the company intends to add smartwatches to the list of its flagship products. This shift from audio wearables might be profitable as India's wearable market (smartwatches specifically) sees a whopping 73.6% YoY growth, calculating 30.72 million in a year.
Also, we found out that the company has many other expansion plans lined up, such as local manufacturing and R&D in India to support the "Make In India" campaign. We must understand that boAt IPO is delayed, NOT rejected, so there is still a vast potential for huge returns on boAt unlisted shares. Let's see how this move will benefit boAt's shares in India.
The Uncharted Waters: Understanding Unlisted Share Prices
Simply put, unlisted shares are stocks of companies that are not listed on public exchanges. Also referred to as pre-IPO shares, unlisted shares are the favourite of every retail investor due to higher returns, less volatility and diversity. As the number of companies in the IPO pipeline increases, there is always a buzz in the unlisted shares.
Being a trusted unlisted share company in India, we can tell you that unlisted shares are redefining stock investment and setting benchmarks with lifetime highs. Despite a delay in boAt's IPO, the shares are doing great in the Unlisted Market.
Investors are savvy these days, and they have got the right tricks. Since boAt IPO is postponed, its unlisted shares will boom ahead of its future plans. Investors will pocket greater returns here and then double-fold profits once the company is publicly listed.
The IPO Withdrawal: Unleashing a Market Storm
boAt IPO withdrawal is not an exception. Big companies like Udaan, Mobikwik, Droom and Pharmeasy have postponed their IPOs to earn extra profit from the unlisted market. While Pharmeasy has decided to opt for Right Issues, Mobikwik is looking for alternative ways to gain capital via equity.
Experts believe that several factors might have led boAt to delay its IPO. One prime reason might be fear of low valuation due to a highly volatile market. Moreover, the company recently changed its structure and financial strategy, which might have been a reason for the IPO withdrawal.
Another reason that makes more sense for withdrawing the IPO is the entry of new-age wearables startups taking over a nice share of the industry. Well, boAt has learned a lot from Paytm and Zomato; those have seen their stocks sink post-IPO. It is not just about the Indian market; companies worldwide are seeing a drop in IPO value due to economic constraints.
Navigating the Future: Potential Market Currents
While the boAt has withdrawn its IPO, many more are ready! As far as the impact on the unlisted share market is concerned, an increase in boAt share prices is expected as people will invest more, considering the lock-in period of six months.
It seems a lucrative opportunity for retail investors because boAt is planning expansion, scaling revenue and profitability, which will directly impact unlisted shares - ahead of revised data of IPO. The company is working towards diversifying its partnership manufacturing and posted a revenue of nearly ₹3,000 cr in 2022. From expansion plans to six top hiring companies made, all the factors indicate a boom in the price of boAt unlisted shares.
Want to lock your profit by early investment in boAt unlisted shares? Speak to professional unlisted share brokers in India and get the best advice and support at Stockify.
Frequently Asked Questions
Why did boAt withdraw its IPO?
Multiple factors include expansion, fear of low valuation like Paytm and Zomato and new investors joining boAt seems major reasons for withdrawing IPO
Who invested in boAt ahead of its IPO?
Two recent investors in boAt - Warburg Pincus and Malabar Investment Advisors - invested ₹500 cr ahead of boAt's most awaited IPO.
What will be the new valuation of boAt IPO?
Since the company has raised capital for its expansion plans into the smartwatch category, boAt might change its IPO valuation from $2 billion to $3 billion.
What is the new date of the boAt IPO launch?
boAt IPO is delayed, not rejected, and since the company has expansion plans, the IPO might be delayed 12 to 18 months maximum!
Can I buy boAt unlisted shares now?
This is the best time to invest in boAt unlisted shares because investors will re-invest, considering the huge return post-IPO.
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