boAt Heads For IPO, To File DRHP Next Week

Delhi-based pioneer D2C brand and the fifth largest wearable brand globally, boAt is all set to debut the primary market with its IPO. With this move, boAt will become the first-ever D2C brand to launch its IPO.

The company plans to generate as much as Rs. 2,000 crores through this public issue and will file its DRHP with SEBI in the coming week.

Read on to know more about this IPO.

A Closer Look at boAt IPO

As per sources, Boat IPO will consist of fresh share issuance of around Rs. 1,000 crores and an OFS by existing promoters and shareholders amounting to Rs. 1,000 crores.

As a part of its OFS, Warburg Pincus will be one of the significant investors to divest shares and bring the company’s stake below 25%. Currently, Warburg Pincus features around a 30% stake in the consumer electronics brand.

Earlier in 2021, it was speculated that boAt would raise around Rs. 3,000 – Rs. 3,500 crores and seek a valuation of Rs. 10,000 crores ($1.4 billion) from its IPO.

Further, the startup has consulted entities like Credit Suisse, Axis Bank, Bank of America, and ICICI Securities to manage its public issue.

Know About the Company – boAt

boAt is a consumer electronics firm based in India that markets headphone stereos, earphones, premium rugged cables, and travel chargers. The company markets its products via a combination of tie-ins with public events and sports teams and influencer marketing.

The company has managed to mop up around $116 million to date across six rounds of funding. Its major investors include Fireside Ventures, Warburg Pincus, InnoVen Capital, and Qualcomm Ventures.

This Delhi-based startup witnessed an impressive profit after tax of Rs. 78.6 crores in FY2021. This is a 61% jump from its previous PAT in FY2020.

Moreover, boAt posted a total revenue from operations of around Rs. 1,511 crores in FY2021, while its other income stood at a revenue of Rs. 19.57 crores. During FY2021, this startup managed to clock an EBITDA of Rs. 127.1 crores.

Recently, the startup also made the headlines for acquiring Singapore-based wearable firm KaHa Pte Ltd. boAt will seek augmentation of its wearable products with KaHa’s electronic firmware, concept designs, and other capacities.

While boAt is considered the fifth-largest marketer of wearable electronics in India, it has to compete against some of the notable names in the industry, including Mivi, Noise, and Leaf. Internationally, it features a long list of competitors, such as Bose, Apple, Sony, Skullcandy, and more.

Bottom Line

One of the major reasons behind boAt’s growing profitability and revenue is India’s increasing demand for affordable and reputable audio products. Another worthy reason is the increased demand for wireless earphones. This demand is expected to grow at a fast-paced rate, which will benefit the startup in the long run.

Source – inc42

Frequently Asked Questions

1. Who are the founders of boAt?

The co-founders of boAt are Sameer Ashok Mehta and Aman Gupta.

2. What is the overall revenue of the headphone market in India?

As per a study by Statista, the headphone market in India posted overall revenue of $870 million in FY2021. This segment will grow at an increasing CAGR rate of 3.26% annually.

3. By how much did boAt’s total revenue increase in FY2021?

During FY2021, boAt posted total revenue of Rs. 1,531 crores, which is a 2 times rise from its previously recorded revenue of Rs. 704 crores in FY2020.

Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.