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BoAt, a popular Indian consumer electronics brand known for its audio products and wearables, is revving its engine for an Initial Public Offering (IPO). Its parent company Imagine Marketing India is in talks with three investors. Even though, BoAt’s co-founder and CEO, Sameer Mehta stated that there is “no pressing need for the capital and there are some inbound interests from a large global fund, sovereign fund and one strategic investor.”
The co-founder further stated that the company is currently focusing on improving its financial performance in terms of its financial ratio, capital employed, and net profit.
What’s The Reason Behind This Shift?
Boat is making this strategic shift to increase sales and revenue by moving away from entry-level products to higher-priced ranges. Increasing consumer demand for premium devices drives this decision. It is building customer-centric categories within its existing product portfolio to cater to demand. The overall decline in the growth of the Indian wearable market, which has grown by only 2.1% year-on-year, is another factor in this shift.
What’s Driving The Demand For Audio Products?
The current demand for audio products, particularly high-end devices, is increasing. BoAt plans to capitalize on this trend through premiumization. Recently, BoAt launched the Nirvana series, achieving more than Rs. 300 crores in Annual Revenue Run Rate within six months of launch.
How Will Boat Set New Standards In The Indian Audio Market?
BoAt, is teaming up with Ceva, Inc. to boost its market leadership. Ceva is a leading tech company that enhances smart devices. This partnership will introduce new technology to BoAt’s products, including earbuds, headphones, speakers, and smartwatches.
Using Ceva's expertise, BoAt aims to make its products stand out with new features and improved performance. This will help the company stay ahead of its competitors. It will also help strengthen its position as a top brand for quality audio and wearable devices in India.
How Will Boat Attain A Competitive Advantage?
The first product from this collaboration was the Nirvana Eutopia Spatial Audio headphones which highlights BoAt's dedication to advanced technology. These headphones feature CEVA's latest Bluetooth technology, Audio AI DSP, and RealSpace® spatial audio software with accurate head tracking. By introducing its first spatial audio headphones with dynamic head tracking, BoAt is raising the bar in the Indian audio market.
This move sets BoAt apart from competitors and establishes the company as a leader in offering premium audio experiences to Indian consumers. By consistently releasing high-tech, feature-rich products, BoAt aims to solidify its leadership and capture a larger share of the premium audio market.
BoAt IPO
BoAT has filed a draft prospectus with SEBI to launch its first IPO or initial public offer worth Rs 2000 crore in 2022. “We will get ready for an IPO. In my estimation, it is about 18 months away. We are working on all the internal parameters required to get us there,” Sameer Mehta, co-founder and chief executive officer (CEO), BoAt, told Business Standard.
The company seeks to raise Rs 900 crore through the issue of shares while existing shareholders have offered shares of Rs 1000 crores for sale. Currently,boat share priceis around Rs 1500. Investing in unlisted boat shares can give a significant return in 2024-25.
How Can You Buy Boat Shares?
Boat has been recording higher profits and revenues in each fiscal year since its start. With a high demand for easy-to-use transport electronics in the market, BoAT has a probability of high growth. Until now, BoAt is an unlisted share in India which will be coming soon with its IPO.
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