Imagine Marketing, a parent company of boAt withdraws its Initial Public Offering (IPO) to raise Rs 500 crore. The Delhi-based D2C electronic brand filed a Draft Red Herring Prospectus (DRHP) with SEBI in January 2022 with a plan to raise Rs 2000 crore through an IPO.
In the statement, boAt’s officials mentioned the reason behind an IPO withdrawal to focus on expanding the business operations. The company's decision to withdraw its IPO significantly impacted the price fluctuations of boAt's Pre-IPO shares. This blog will discuss the reason behind the IPO withdrawal and its impact on boAt unlisted share price.
Why Did BoAt Withdraw Its IPO?
The most awaited boAt IPO suddenly withdrew, which impacted boAt unlisted shares. The decision of an IPO withdrawal when boAt Pre-IPO shares perform well in the grey market is due to the SEBI regulations allowing the company to raise a maximum of Rs 150 crore equity. Here are prominent reasons why boAt withdrew its IPO:
- The primary reason shared by the company behind its decision to an IPO withdrawal is its plan to raise Rs 500 crore capital from its current investors, Warburg Pincus's affiliate, a global equity firm, and one new investor, Malabar Investment. In the future, boAt stock price will determine based on the various factors in which the company's equity funding also comes into account.
- Another reason behind the IPO withdrawal is the volatile global market currently affected by inflation, recession, and the ongoing Russia-Ukraine war. BoAt delayed its IPO and focused on developing new business strategies to overcome the challenges posed by the current market conditions. In the past few years, boAt unlisted share price dipped due to the slowdown in the share market due to the pandemic.
- In addition, boAt also gets a better valuation from its current investors, which will be able to convert its preferred stocks into equity at the valuation of Rs 120 crore whenever boAt goes ahead with its IPO. Now, boAt aims to bring its IPO in the next 8-12 months.
The question here, which every investor asks, is the impact of an IPO withdrawal on boAt unlisted share price. Let's discuss it in the next section.
BoAt Unlisted Share Price After Its IPO Withdrawal
The best way to know the impact of an IPO withdrawal on boAt Pre-IPO shares price is to analyse its price history. If you are an investor who buys boAt unlisted shares, there are higher chances that you noticed the fluctuation in its price over time.
Based on the historical data, boAt Pre-IPO shares price was at its lowest (Rs 750) during September 2022, during which the news of boAt IPO withdrawal came. However, the price of boAt unlisted shares was at its peak during November 2022, which was Rs 930, as the company raised capital of Rs 500 crore and worked on its business expansion.
After that, boAt share price fluctuated over the months and hit Rs 900 in the first week of 2023. Throughout the year, the price of boAt's Pre-IPO shares declined and seldom surpassed the 900 mark in the price chart. Based on recent data, boAt unlisted shares price is Rs 785.0 per share. You can check the updated price of boAt and other companies’ unlisted shares on Stockify.
The impact of the IPO withdrawal on boAt unlisted share price in India was huge in its initial months. It is too early to say that the fluctuation in boAt share price today is due to the company's decision to an IPO withdrawal. However, it is interesting to see if the delay in an IPO will impact boAt IPO share price in the future.
Future Plans Of BoAt After An IPO Withdrawal
The IPO withdrawal doesn't mean boAt is not planning to bring its IPO in the future, and this delay is due to some of the specific reasons we mentioned above. The company plans to enter the smartwatch market and focus on making it the second flagship product after audio products.
In addition, boAt is also working towards expansion plans for which the company raised a capital of Rs 500 crore from its investors. In its business expansion plan, boAt will increase local manufacturing and invest in the R&D department.
Currently, boAt unlisted shares are actively traded in the Pre-IPO market. As the company plans to bring its IPO in the next few months, you can take an early advantage by investing in boAt Pre-IPO stocks. It involves less risk and is a great option to diversify your investment portfolio.
You can easily buy unlisted shares from Stockify, which is India's best online unlisted shares brokerage platform. Here, you will get complete details of boAt's financial data, performance, and updated unlisted share price. Be a part of boAt's growth and start investing in its unlisted shares now!
FAQs
1- Can I Invest In boAt Unlisted Shares Easily?
You can easily invest in boAt unlisted shares using an online trading platform. To buy boAt unlisted shares, connect with experts at Stockify today.
2- Why Did boAt Withdraw Its IPO?
The main reason behind an IPO withdrawal by boAt is its plan to fuel business expansion.
3- Is It Safe To Buy boAt Unlisted Shares Before Its IPO?
Buying a boAt unlisted shares before its IPO is safe as it involves less risk and allows you to diversify your investment portfolio.
4- When Will boAt Bring Its IPO In The Future?
The company has not disclosed an exact date till now. However, it is expected that boAt's IPO can go public in the next 8-12 months.
5- What Is The Current boAt Unlisted Share Price?
The current price of boAt unlisted shares is Rs 785 per share, which keeps changing. To check the updated boAt share price, visit Stockify.
