BoAt Imagine Marketing IPO: Should you invest?

Imagine Marketing Limited, brand name BoAT (known for its quality – headphones, earphones and speakers) is coming out with an IPO of Rs. 2000 crores. 

The IPO comprises of  –

  • a fresh issue of equity shares aggregating up to Rs. 900 crores, and
  • an offer for sale (OFS) component aggregating upto Rs. 1100 crores 

The face value of each BOAT Imagine Marketing equity share is Re. 1 each. 

Mr. Sameer Mehta and Mr. Aman Gupta are the promoters of the company. 

The promoter and its nominees collectively hold 80.10% of the pre-issue shares issued. Post IPO the promoter’s shareholding will come down to XX% (TBD).

The book-running lead managers of the public offering are Axis Capital Limited, BofA Securities, Credit Suisse and ICICI Securities Limited. And the registrar for the issue is Link Intime India Private Limited.

Here is the table of companies looking to float IPO in 2023.

BOAT Imagine Marketing IPO Details

IPO Opening date(TBD)
IPO Closing date(TBD)
IPO PriceRs. xx to Rs. xx (TBD)
Lot sizexx shares (TBD)
Issue sizeRs. 2000 Cr
No. of fresh sharesXx shares aggregating to Rs. 900 crores
Offer for Sale Xx shares aggregating to Rs. 1100 crores
Listing onBSE and NSE

BOAT Imagine Marketing IPO Timetable

IPO Opening date(TBD)
IPO Closing date(TBD)
Basis of Allotment date(TBD)
Credit of Share (TBD)
Listing date (TBD)

Learn more about how to invest in IPO in India.

BOAT Imagine Marketing Overview

Imagine Marketing was founded in 2013 and the flagship brand “boAt” was launched in 2014.

In 10 years of operations, Imagine Marketing has established leading market positions in volume and value terms in India across multiple, high-growth consumer categories such as audio and smartwatch.

BoAt initially started with hear-ables products within the audio category. Now Imagine Marketing offer products across a variety of price points and customer segments across multiple product categories like – 

#1. Audio segment 

  • wired headphones and earphones, 
  • wireless headphones and earphones (neckbands), 
  • true wireless stereo (“ TWS”), 
  • Bluetooth speakers and home theatre systems and sound bars), 

#2. Wearables (smartwatches)

#3. Gaming accessories (wired and wireless headsets, mouse and keyboards)

#4. Personal care appliances (trimmers and grooming kits) and 

#5. Mobile accessories (chargers, cables, power banks and other accessories).

For the second quarter of the Financial Year 2022, BoAt was ranked #1 in India among the wireless hearables brands by value and volume and #2 among smartwatch brands in India in terms of volume 

The company has grown revenue from operations at a CAGR of 141.18 % between the financial years 2019 and 2021.

Other Imagine Marketing top brands include – 

  • RedGear – gaming accessories brand
  • TAGG – premium audio and wearables brand
  • Misfit – personal care and grooming sub-brand
  • DEFY – value-oriented audio brand

BOAT Imagine Marketing GMP

Grey Market Price (GMP) information is available approximately 4-5 days before the IPO opens and persists until the listing date. 

For BOAT Imagine Marketing Ltd IPO, we have already obtained GMP data for the past 3 days, which should provide a reasonable indication of price upon listing.

GMP serves as an effective reflection of the true narrative surrounding a stock. But you need to take precautions because GMP is not an official price and only an indicative value.

Below is a brief summary of the GMP for BOAT Imagine Marketing Ltd for the last 4 days obtained from various sources on the internet.

2023Rs. xx (TBD)
2023Rs. xx (TBD)
2023Rs. xx (TBD)
2023Rs. xx (TBD)

BOAT Imagine Marketing Subscription Data

Day – 1 (TBD)(TBD)(TBD)(TBD)(TBD)
Day – 2 (TBD)(TBD)(TBD)(TBD)(TBD)
Day – 3 (TBD)(TBD)(TBD)(TBD)(TBD)

Promoter Details

Mr. Sameer Mehta and Mr. Aman Gupta are the promoters of the company. 

The promoters collectively hold 80.10% of the pre-issue shares issued.

The promoter, along with its nominees, holds an aggregate of 76,740,000 Equity Shares, comprising 80.10% of the pre-Issue issued, subscribed and paid-up Equity Share capital of the Bank

Company Financials

Key financials of BOAT Imagine Marketing Ltd for the last 3 completed financial years is under. These include the fiscal years FY21, FY20 and FY19.

DetailsFY- 2021FY- 2020FY- 2019
Revenue from operationsRs. 1313.7 crRs. 609.1 crRs. 225.8 cr
Purchases of stock in tradeRs. 1254.7 crRs. 491.5 crRs. 200.8 cr
Net Profit Rs. 86.5 crRs. 47.8 crRs. 8.0 cr
NetworthRs. 464.1 crRs. 71.5 crRs. 23.1 cr
Return on net-worth18.64%66.82%34.80%
Return on Capital Employed  (%)56.03%92.69%NA

You can find here the different techniques of financial analysis.

BOAT Imagine Marketing Peer Comparison

There are no listed companies in India that engage in a business similar to that of Imagine Marketing Limited. Hence, it is not possible to provide an industry comparison in relation to the company.

Objects of the Issue

BOAT Imagine Marketing proposes to utilize the Net Proceeds from the Issue for –

1. Repayment or pre-payment, in full or in part, of the outstanding borrowings for an estimated amount of Rs. 700 crores.

2. For General corporate purposes.

As of December 31, 2021, Imagine Marketing Limited has total secured and unsecured borrowing aggregating to Rs. 764 crores. A majority of the borrowings are from HSBC and ICICI Bank Limited.

The company proposes to utilize an estimated amount of Rs. 700 crores from the IPO money to repay/pre-pay the borrowings.

Tentative Issue size

Rs. 2000 crores.

BOAT Imagine Marketing Limited IPO Is Worth?

BoAt is one of the largest Indian digital-first brands with leading market positions across multiple fast-growing product categories. 

The flagship brand “boAt” is a consumer brand with strong market positioning and a clear value proposition.

Imagine Marketing’s digital-first platform capabilities are targeted to enable growth and continue to allow us to build a presence across multiple consumer categories. The company has grown revenue from operations at a CAGR of 141.18 % between the financial years 2019 and 2021.

Overall they have a professional, founder-driven management team with deep industry expertise and track record and an experienced consumer products CEO. 

About Rajan Dhawan

Rajan has covered personal finance and investing for over 5 years. Previously, he was in the IT field for 8 years after completing his MCA but his deep interest in personal finance led him to become an investing expert. He is passionate about investing, stocks, startups, and cryptos.

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