IPO • Aug. 16, 2022

When can we expect boAt IPO to be launched?

About boAt-


Imagine Marketing Limited, the parent company of boAt which is one of the largest direct-to-consumer audio-focused electronics brands, filed a DRHP for boAt IPO on 26 January 2022 with SEBI for an IPO of Rs. 2000 Crores. This offer includes 900 Cr. of Fresh Equity shares and an Offer for Sale (OFS) amounting to Rs. 1100 Cr. as described in the BoAt IPO DRHP. Further, the company is looking to raise Rs. 180 Cr. through BoAt Pre IPO placement. SEBI gave approval for boAt IPO on 18th May 2022. BoAt IPO date is not yet revealed.

Why subscribe to boAt IPO?


Imagine Marketing Limited is a digital first consumer products company and one of the largest Indian digital first brands in terms of revenue from operations for the F.Y 21.

The Company has an attractive offering of wide ranging, high quality and aspirational lifestyle-focused consumer products at accessible price points, under its brand. 

Founded in 2013 and led by its flagship brand boAt launched in 2014, the company has established leading market positions in volume and value terms in India across multiple, high growth categories such as audio and smartwatch as of September 30, 2021. The company seeks to identify fast growing, lifestyle oriented product categories with high consumer engagement and large market opportunities and disrupt the incumbent industry landscape.


 


Consistent Track Record of Financial Performance:


The Company has seen stellar growth in its revenue in F.Y 21, increasing from Rs. 2258.49 Mn in F.Y 19 to 13,137 Mn in F.Y 21, showing a growth rate of 581.79%. The Company’s Profit after Tax increased from Rs. 80.37Mn in F.Y 19 to Rs. 865.37 Mn in F.Y 21 showing a growth of an impressive 1081%.

 


The Operating Return on Capital Employed has seen a growth rate of 56.03% year on year from F.Y 20 to F.Y 21. Earnings per Share have also consistently increased from 0.80 in F.Y 19 to 8.53 in F.Y 21.



SWOT ANALYSIS:


Strength: boAt has adopted a lifestyle approach towards its brand positioning and has consequently introduced products with trendy designs, vibrant colors and practical features that are relevant to the Indian Audience across various product categories so as to differentiate its products from those of its competitors. For the third quarter of F.Y 21, as per Flipkart’s brand awareness index, the flagship boAt brand enjoyed the highest brand awareness score in the personal audio and wearable segment.


Weakness:

The Company relies on a number of third-party suppliers for the production of its products.

The company is reliant on its relationship with certain online marketplaces and offline distributors.

Pricing pressure from customers, online marketplaces or distributors may affect its gross margin.


Opportunities:

Entering new geographies and international markets can significantly contribute to the growth of the business.

Increasing trend of customer spend on smarty wearables.


Threats:

The Company faces stiff competition from different unknown brands available on marketplaces.

Heavy reliance on one brand.


Strategies going forward:

1. Expand Presence into adjacent Product Categories: Imagine Marketing Limited aims to grow its business through further investment towards its existing brands and by acquiring other consumer brand products and offering them under its own boAt brand.


2. Diversifying its Supplier & Contract manufacturer network: Imagine Marketing Limited has taken significant steps and plans to continue to diversify its supplier base further increasing the resilience of its supply chain by engaging new suppliers based in India & Vietnam, thereby increasing the share of its products being manufactured in these countries.


3. Investing in its research & development: Imagine Marketing Ltd. intends to invest in its human capital in research & development & grow its boAt Labs team to develop know-how of global technology.


If you want to get the first mover advantage, you can invest in BoAt Pre IPO with Planify. Currently, the BoAt Unlisted Shares Price is valued at Rs. 900 per share in the unlisted shares market.


Comparison with Peers: For comparison with peers, you can visit the below link of boAt financial report from our website which has been compiled by Financial Analyst Utkarsh Sinha.


Complete report on Boat Unlisted Shares.

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