IPO Update: BOAT’s Parent Company Files For Rs.2,000 Crore IPO

Imagine Marketing, the parent company of Boat, an electronics and lifestyle brand that is one of India’s few hardware companies, has applied for an IPO worth up to $266 million.

Boat, which is financed by Warburg Pincus, said in its DRHP filing with the local regulator on Thursday that it aims to issue new shares worth roughly $120 million and sell shares for $146 million. According to the filing, one of Boat’s investors, South Lake Investment, expects to sell shares worth $106.4 million in the IPO.

Fireside Ventures, Qualcomm Ventures LLC, and South Lake Investment Ltd, an offshoot of the Warburg Pincus Group, are among the firm’s investors. The Imagine marketing share sale would include a fresh issue of up to 900 crore shares and an offer for sale (OFS) of up to 1,100 crore shares. In the IPO, South Lake Investment would sell up to 800 crore worth of shares. Aman Gupta would sell up to Rs.150 crore in shares, Sameer Mehta will sell up to Rs 150 crore, and South Lake Investment Ltd will sell up to Rs.800 crore. Mehta and Gupta each own around 40.05 percent of the company, while South Lake owns 19.32 percent.  The company’s promoters are Sameer Mehta and Aman Gupta. Aman Gupta is a judge and investor on Shark Tank India, a show that invests in emerging businesses.

Imagine Marketing was established in 2013, with the launch of its flagship brand, BoAt, in 2014. According to a PTI report, BoAt has acquired top market positioning in India in terms of volume and value throughout various, rising customer sectors like as audio and smartwatches from its very start.

Boat makes and distributes a variety of electronic devices, including headphones, fitness wearables, smartwatches, and gaming controllers. Mobile accessories such as charging cords, portable battery packs, earbuds, and other mobile accessories are available. The low cost and superior appearance of these devices have helped it appeal to a younger demographic, who makes up the majority of its client base.

Boat had over 30% of the wearable market in India and was the fifth-largest brand internationally in the category as of early last year, according to marketing research firm IDC.

The company ranked first in India among wireless hearables brands in terms of value and volume as of September 2021, for the second quarter of fiscal year 2022, and second among smartwatch brands in terms of volume.

The company earned Rs.1320.38 crore in FY21, up from Rs.609.96 crore the previous year. The net profit for the year was Rs.86.54 crore, up from Rs.47.80 crore the previous year. Its overall income for the six months ending September 2021 was Rs.1553.15 crore, with a net profit of Rs.118.32 crore.

The issue’s book-running lead managers are Axis Capital, BofA Securities, Credit Suisse Securities India, and ICICI Securities.