Consumer electronics brand boAt may soon have an IPO. Imagine Marketing, the owner of leading direct-to-consumer, audio-focused electronics brand boAt, has filed a draft Red Herring Prospectus (DRHP) with market regulator SEBI for this.
New IPO to Launch in 2022: Consumer electronics brand boAt may soon have an IPO. Imagine Marketing, the owner of leading direct-to-consumer, audio-focused electronics brand boAt, has filed a draft Red Herring Prospectus (DRHP) with market regulator SEBI for this. According to DRHP, the issue size will be Rs 2000 crore. In addition to the issue of fresh equity shares, there will be an offer for sale (OFS). If you are waiting for this issue to come, then it is important to first take complete information about the company’s plan.
2000 crore IPO
According to DRHP, the size of boAt’s IPO will be Rs 2000 crore. In this, fresh equity shares of Rs 900 crore will be issued, while there will be an offer for sale (OFS) of Rs 1100 crore. Under this, existing shareholders will reduce their stake. In this, Aman Gupta and Sameer Mehta, cofounders of boAt, will sell shares worth Rs 150 crore. At the same time, shares worth about Rs 800 crore will be sold by the investor South Lake Investment Limited.
Where will the funds received be used?
The company will use the proceeds from the IPO to repay or prepay its debt. The prepayment or the scheduled repayment will help the company to maintain the debt commensurate with the equity ratio. And with this it will also help in business growth and expansion. Axis Capital, BoFA Securities, Credit Suisse Securities, ICICI Securities will be the Book Running Lead Managers for this issue.
about the company
The company was started in 2013 and was launched in 2014 under the name boAt. The company has a strong market position in earphones, speakers, headsets and smartwatches. The company says that between FY 2019 to FY 2021, the company’s operating revenue has grown at a CAGR of 141 percent annually, while the company has also maintained profits during this period.
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