boAt IPO Is Back: Files For ₹1,500 Cr IPO

Imagine Marketing, boAt’s parent company and a well-known consumer electronics brand, is steering toward the public markets for the second time. On Oct 29, boAt filed its UDHRP (Updated Draft Red Herring Prospectus) with SEBI for a major IPO (Initial Public Offering). This is boAt’s second attempt at a public listing. It had made this attempt earlier with its original ₹2,000-crore plan which was filed in Jan 2022, which was later shelved. This is a new and leaner public issue that is sized at ₹1,500 crore. It comprises both, fresh issue and Offer for Sale (OFS).

• A ₹500 crore fresh issue
• A ₹1,000 crore OFS

The OFS will see partial exits from promoters and major investors including:

• Co-founders Aman Gupta (₹225 crore) and Sameer Mehta (₹75 crore)
• South Lake Investment Ltd. (₹500 crore)
• Fireside Ventures (₹150 crore)
• Qualcomm Ventures (₹50 crore)

Most importantly, this UDHRP filing has come on the back of a noteworthy financial turnaround. After posting heavy losses in previous fiscal years, boAt has reported a consolidated net profit of ₹61.08 crore for FY25. This momentum appears to be continuing, with the company also posting a profit of ₹21.3 crore in the first quarter of FY26. This is a sharp reversal from its loss in the same period last year. With a profitable balance sheet and a smaller IPO, the critical question is: what has changed, and is boAt finally ready for the public market's scrutiny?

Why The New Filing With The Smaller Size?

A direct “changed market and a changed company” reflection is the decision to relaunch the IPO with a trimmed size is. The initial 2022 attempt was timed at the peak of the post-pandemic tech boom. However, it coincidently collided with a harsh global market correction. There was also a downturn in the company’s own finances. This saw it slip into considerable losses in FY23 and FY24.

This new ₹1,500-crore offer is down 25% from the original ₹2,000-crore plan. It is signalling a far more measured and realistic approach. Furthermore, the company is presenting itself as a more disciplined, mature, and, most importantly, profitable entity rather than as a high-growth, cash-burning startup. This pivot is designed to specifically appeal to the cautious post-correction investor.

The funds from the fresh issue are earmarked for shoring up the balance sheet. IPO funds are aligned to cater the following:

• ₹225 crore for working capital requirements
• ₹150 crore for brand and marketing initiatives

This allocation itself is telling a story. boAt is gearing up to defend its market-leading position through aggressive marketing, a necessity in the cut-throat consumer electronics space. But has this focus on profitability come at the cost of its growth engine?

What Is Powering The Profit?

This can be the central paradox in boAt's IPO story. The company’s return to profit is almost entirely anchored by its staggering dominance in the personal audio market (earbuds, headphones, and more.). This segment is its cash cow. It accounts for 84.23% of its revenue in FY25 and cementing its India #1 position.

However, the UDRHP has revealed a significant weak link. This would be the wearables (smartwatch) category. This segment, once hailed as the company's next big growth frontier, has seen its revenue plunge. The company has attributed this to a broader industry slowdown, intense competition, and falling prices.

This has created a high-stakes concentration risk. The company's fortunes are now more dependent than ever on its audio business. So, can boAt truly be valued as a long-term growth story if its primary diversification bet has stumbled so badly?

The IPO Focus

The company is a wildly popular, founder-led brand that has proven its resilience by clawing its way back to profitability. Its brand loyalty is undeniable. Also, its market share in its core category is formidable. However, it is also relying heavily on just two e-commerce platforms, Amazon and Flipkart, for a significant share of its sales. This can create a vulnerability to any change in their policies or fee structures.

Therefore, the IPO, can be a critical test of whether the public market believes boAt is a sustainable, profitable leader or a brand that has already seen its fastest growth days and is now fighting to protect its turf.

Source

Moneycontrol
Business Today
Inc42
NDTV Profit
Business Standard