Imagine Marketing’s Audio and wearable brand boAt has filed DRHP(draft red herring prospectus) for a Rs.2000 crore IPO (Initial Public Offering) with SEBI. The documents show a fresh issue of shares worth Rs 900 crore and an offer for sale of shares worth up to Rs 1,100 crore. South Lake Investment will sell shares worth Rs.1,100 crore.
The six year old homegrown startup has made a name for itself in the audio and wearable segment with its offerings on e-tailers Amazon and Flipkart. In March 2020, the company made sales of Rs 600 crore with a profit of Rs 50 crore. In April 2021, the company’s sales jumped to Rs 15,000 crore and its profits jumped to Rs 118 crore. According to sources, the company is expecting it’s revenue to double. And as profits and sales are increasing, the company will seek a valuation of $1.5-2 billion in the IPO. In April last year the Indian Unicorn raised Rs 50 crore from Qualcomm Ventures at a valuation of Rs 2.200 crore. ICICI Securities, Axis Capital, and Credit Suisse Securities are the book running lead managers for the company’s IPO.
About the Company:
Shark Tank viewers in India know co-founder and Marketing Director of boAt Aman Gupta who spearheaded their marketing campaign which suits the aspirational class of the society as it offers products at cheaper rate than market rivals like JBL. Eight out of ten products sold by the company are through Amazon and Flipkart. The company doesn’t have a manufacturing facility as it sources all the products from different manufacturers. According to reports, 89 percent of the company’s products are manufactured in China.