Audio-focused electronics brand in India, BoAt is set to file a draft red herring prospectus for Rs 2,000-crore initial public offering with the Securities and Exchange Board of India this week. According to sources, the New Delhi-based company is expected to seek a valuation of $1.5-2 billion in the IPO which will be floated this year.
BoAt brand of Earphones and Smartwatches is owned by Imagine Marketing and its promoters are Sameer Mehta and Aman Gupta. Its share sale will consist of fresh issue of shares worth up to ₹900 crore, and offer for sale (OFS) of shares worth up to ₹1,100 crore.
The company will use the proceeds from the IPO to repay or prepay its debt. The prepayment or scheduled repayment will assist the Company in maintaining a favourable debt to equity ratio and enable utilization of its internal accruals for further investment in business growth and expansion.
Boat was last valued at around Rs 2,200 crore when it raised Rs 50 crore from Qualcomm Ventures in April last year. It is now eyeing a valuation of around 5-6 times its revenue for this fiscal, the report added. “They (Boat) are getting indications to price the IPO at revenue multiples of five to six times,” one of the people familiar with the matter told ET. “They are expected to nearly double the revenue by the end of March.”
Axis Capital, BoFA Securities, Credit Suisse Securities, ICICI Securities are book running lead managers for Imagine Marketing’s initial share sale.
Founded in 2013, Imagine Marketing launched its flagship brand ‘boAt’ in 2014. Since then the company has established leading market positions in volume and value terms in India across multiple, high-growth consumer categories such as audio and smartwatches as of September 30, 2021.
The company said that it has grown its operating revenue at a compound annual growth rate (CAGR) of 141% from FY19 to FY21, while maintaining profitability.