boAt IPO

IPO Price Range: Not Announced Yet

boAt lifestyle or Imagine Marketing Limited is a consumer electronics company. It was founded in 2013 by Sameer Mehta and Aman Gupta.
They launched their flagship brand ‘boAt’ in 2014.

The company is popular for its audio wearables, home audio and gaming accessories. boAt’s currently valued at $1.32 billion and it plans to raise ₹2000 crores from its IPO as per their DRHP filed on January 2022.

IPO Status

Upcoming

Listing Exchange

NSE

boAt Key Financials

*Value in ₹ crore

Details	2021	2022	2023	2024
Total Revenue	₹1320.3	₹2886.4	₹3284.7	₹3121.6
Total Assets	₹678.4	₹1874.2	₹2103.4	₹1705.4
Total Profit	₹85.8	₹78.8	₹-101	₹-53.5

Objectives of boAt IPO

boAt received its fund and non-fund based facilities from various banks and financial institutions. The company intends to use ₹700 crores of the total net proceeds to repay or pre-pay its loans and borrowings.

The company plans to invest a part of its proceeds in improvising its marketing efforts and brand building.

The D2C business plans to expand operations in international markets including UAE, Nepal and other Southeast Asian regions. It also plans to build brand awareness in Tier 2 and Tier 3 cities.

The company expects that listing its equity shares on the stock exchange will enhance brand recognition and attract potential customers.

Shareholding Pattern

Promoters		56.52%
Name	Role	Stakeholding
Sameer Mehta	Promoter	28.26%
Aman Gupta	Promoter	28.26%
South Lakes Investments	Investor	36.48%
Others		7%

Listed Competitors of boAt

JBL

JBL is an American audio equipment manufacturer. Founded in 1946, offers audio accessories like loudspeakers, bluetooth speakers and high-end car audio.

Sony

Sony started in Japan in 1946 in the consumer electronics space. It soon established itself as a premium brand in key product categories like television, personal audio, home audio, car audio, etc.

Unlisted Competitors of boAt

Noise

Founded in 2014, Noise is an Indian company that sells audio wearables, smart watches and other accessories like Luna Ring, Sunglasses, etc.

Boult

Boult is a consumer electronics company that offers a wide range of products like headphones, speakers, earbuds, etc. The company was founded in 2017 and it sells largely in online marketplaces like Amazon, Flipkart, etc.

Strengths and Risks of boAt IPO

Strengths

boAt ranked no. 1 in wireless wearables brand with a market share of 48% by volume and 30% in value in India.
The founding team of boAt holds more than 50% equity at the time of IPO which is a testament to its scorching growth and its relatively sustainable margins.
boAt maintains consistency of supply of products by working with reputable suppliers, logistics companies and vendors and maintaining strong relationships with factories and manufacturers.

Risks

boAt operates in an industry with intense competitors including some large and established players like Sony and JBL which may reduce the demand for its products and services.
boAt relies heavily on third-party contract manufacturers and suppliers. Any shortage in supply will impact the operations of the company negatively.
The company is heavily reliant on online marketplaces for the sale of products, disruptions in such relationships can hamper the business operations and cash flows.

Frequently Asked Questions of boAt IPO

What is 'pre-apply' for boAt IPO?
'Pre-apply' for boAt IPO indicates your interest in the IPO before it opens for subscription. This ensures quick application when the IPO goes live.
What would be the listing gains on the boAt IPO?
The potential listing gains on the boAt IPO will depend on various market factors and cannot be predicted with certainty.