New Delhi-based consumer electronics brand boAt is planning to float a public issue of about Rs. 3500 crores in the coming months. Even though there is no official comment available yet, sources close to this matter is expecting a DRHP (draft red herring prospectus) filing in the next couple of months.
The senior management has already held a meeting with a few investment bankers to finalise details of this public issue. Moreover, the mandate is likely to be signed in the next couple of weeks, and the company is expecting to hit the bourses in early 2022. As per estimates, this public issue will value this company at about Rs. 11,000 crores or $1.5 billion.
Nonetheless, details such as shares allotment, pricing, etc., are yet to be confirmed by the parties associated with this matter.
Operated under the banner of Imagine Marketing Private Limited, boAt began its voyage in 2016. Aman Gupta and Sameer Mehta were the enthusiasts who began this journey with an aim to offer reliable yet affordable music devices. Simultaneously, their primary focus was to make such devices more fashionable, creating a larger lifestyle brand.
The company started small, used to retail its products through e-commerce platforms. Fast forward to 2021; boAt products are now available through retail outlets and their own website as well.
In terms of investors, Warburg Pincus, the US-based private equity fund, is a majority stakeholder in this company with about 30% shares. Fireside Ventures and Qualcomm Ventures together has a less than 5% share in boAt.
Its largest stakeholder pumped about Rs. 750 crores into the company earlier in 2021. Qualcomm Ventures invested an additional Rs. 50 crores in April this year.
As per the data of International Data Corporation or IDC, boAt is now the 5th largest wearable brand in the world. The company now shares this stage with names like Samsung, Apple, Fitbit, Huawei, Xiaomi, etc.
What’s fuelling this growth?
The category of earwear in India itself registered a 113.1% year-on-year growth in the April to June quarter of FY2021. 9.2 million units have been shipped under this category as per IDC data. boAt’s diverse portfolio and its shipment strategy helped it to secure a 45.5% share of this segment.
Furthermore, in the True Wireless and smartwatch verticals, boAt has a market share of 39.6% and 26.9%, respectively.
The Covid-19 pandemic, however, had no lasting effect on the company’s revenue. The restrictions due to lockdowns and curfews have disrupted the shipments but were resolved with time.
The journey of boAt as an organisation has been fascinating. A 6-year-old company has successfully knocked some of the more established brands off their perch with aggressive pricing and the latest products. Nonetheless, if you are planning to apply for this boAt IPO, it is vital to go through its finances and other associated details before moving ahead.
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No official information regarding the lead managers is available yet.
The company has not finalised the registrar yet.
You can apply for boAt IPO online by using the Angel One platform.
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