Imagine Marketing Limited, the company behind ‘Boat’ earphones, has filed a draft red herring prospectus with the Securities and Exchange Board of India — taking the first step to listing its shares on the stock exchanges.
The company wants to raise Rs 2,000 cr from investors.
Out of this, only Rs 900 cr is being raised by the company. The remaining is being raised by the existing shareholders of Imagine Marketing, such venture capitalists and private equity investors.
BoAt sells mostly audio accessories on India’s e-commerce websites, such as Flipkart and Amazon. These include earphones, headphones and bluetooth speakers.
The company said it will use the proceeds from the IPO to reduce its debt.
“The prepayment or scheduled repayment will assist the Company in maintaining a favourable debt to equity ratio and enable utilization of our internal accruals for further investment in business growth and expansion,” it siaid.
The company said India’s domestic electronics market will more than doube to 15,000-18,000 cr in the next four-five years from around 6,500 cr at present.
“Recently, the government has recently outlined a 30,000 cr electronic production vision document, which aims to make electronics India’s third-largest export category, by expanding exports to Rs 12,000 cr from the current Rs 1,060 cr.”
Wearables and hearables products within electronic products manufacturing and electronic export is estimated to be $8bn (in local manufacturing) and $2-3bn (in exports) by 2025-26.
It has been identified amongst the total 11 product categories that will drive the $300bn electronic production vision.
Wearables is one of the primary product categories where Imagine Marketing has established a market leading position.
The company’s “boAt” brand was ranked #2 in India among smartwatch brands and the tenth largest among smartwatch brands globally in terms of volume as on September 30, 2021.
For the second quarter of FY22, the Company 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, it said.
It has seen its operating revenue grow by 141% from FY19 to FY21, while maintaining profitability, it claimed.