Unlistedkart part of the Qapita family. Read the announcement

boat_logo

Buy Sell boAt
Unlisted Shares with Unlistedkart

The boAt company valuation is expecting a $1.5-2 billion valuation this year.

Contact Us

About boAt

The boAt company valuation is expecting a $1.5-2 billion valuation this year.

Imagine Marketing Limited, parent company of boAt, one of the country's largest direct-to-consumer, audio-focused electronics firms, is set to submit a draft red herring prospectus for a Rs 2,000-crore initial public offering with SEBI (Securities Exchange Board of India).

In the IPO, Warburg Pincus, the single largest shareholder in boAt with around 36% ownership, will sell shares worth Rs 700-800 crore. The cofounders Aman Gupta and Sameer Mehta, who own around 56 percent of the firm, are anticipated to dilute a minor share of their stake.

When it raised Rs 50 crore from Qualcomm Ventures in April last year, boAt was valued at around Rs 2,200 crores. This fiscal, it is aiming for a valuation of 5-6 times its income.

Imagine Marketing Limited, parent company of boAt, one of the country's largest direct-to-consumer, audio-focused electronics firms, is set to submit a draft red herring prospectus for a Rs 2,000-crore initial public offering with SEBI (Securities Exchange Board of India).

boAt was formed in 2016 and has quickly established itself as one of the standout homegrown D2C brands that have challenged market leaders in the earphones and wearables industry.
On the basis of Rs 1,500 crore in income, it recorded a net profit of Rs 78 crore for the year ended March 31, 2021.

The firm is establishing a venture fund to invest in early-stage D2C companies as the sector gains exposure and more customers begin purchasing via ecommerce.

Wearables are a major component of the company's strategy, which is why it has been expanding under the brand. boAt also said it is one of the top two businesses in the industry, with a 20% market share, after starting up operations in less than one year.

According to the firm, the wearables market in India is anticipated to be more than ten times its current size of $200 million by 2025.

IPO Objectives:

The following are some of the goals that boAt hopes to achieve with the proceeds of this IPO:

• Increase their presence by participating in a variety of lifestyle categories.
• To continue investing and propel the brand forward.
• Expand marketing capabilities to reach a larger consumer base.
• Develop strong design, R&D, and technical capabilities.

FAQs

  • Here are some of the reasons why an individual should invest in the boAt IPO.

    • Using existing distributors and their relationships with local retailers, the company intends to expand into offline markets and Tier 2+ cities and towns in India. boAt will also increase sales volume on other marketplaces and channels, including the online shopping website Nykaa, the Tata CLiQ store, and Myntra.
    • boAt is a direct-to-customer (D2C) company that ranks highly in the hearables and second in the wearables categories. Digital channels and marketplaces account for more than 85% of total sales for the company, and it maintains its position as the leading brand on these platforms.
    • In order to improve its products, the company has established relationships with component suppliers such as Qualcomm (a parent company shareholder), Google, Dolby, and Bharat FIH.
    • In the last three fiscal years, the company has remained profitable. The electronic goods that the company resells continue to be the most expensive component of its costs.
    • In fiscal year 21, the company generated Rs. 1.3 billion in revenue while investing only Rs. 1.7 million in plant, property, and equipment. To keep capital expenditure to a minimum, the company leases offices and warehouses rather than purchasing them.
  • Download  Unlistedkart  app and conveniently buy and sell unlisted shares through App.
  • With Unlistedkart, you can reach out to our customer specialists at hello@unlistedkart.com

Some notable highlights for potential investors to consider:

boAt intends to expand on its market leadership positions in fast-growing categories in which it already excels.

The company is looking into ways to expand its presence in product categories outside of its core business, either through existing brands or through acquisitions of new brands.

To mitigate the risk of production delays and cost overruns, the company has broadened its supplier and contract manufacturer network and invested in its "Make in India" initiative.

boAt invests in its R&D capabilities and relationships with technology providers in order to develop new products.

In the near future, the company plans to expand into international markets, focusing primarily on audio and wearables.

SWOT Analysis of BoAt IPO.

Strengths

boAt is one of India's largest digital-first brands, with market leadership.

It is a consumer brand with a strong market position and a clear value proposition.

Distinctive marketing capabilities can effectively generate higher levels of consumer engagement and sales.

With real-time feedback from sales channels and customers, the company can develop products on time and stock the most popular ones.

boAt Labs' in-house design team has worked on several projects aimed at improving the company's products. According to boAt, this has aided in the development of a product line tailored to the Indian market.

Weakness

To manufacture its products, the company must rely on a number of third-party suppliers.

Similarly, the company must rely on its relationships with online and offline retailers.

Pricing pressures from marketplaces and consumers can have an impact on gross margins.

Opportunities

Entering international markets and new geographies can be a significant source of growth for businesses, depending on the industry.

Revenue will be driven by increased demand for smart wearables.

Threats

Customers lack brand loyalty when it comes to boAt. New brands offering quality products at comparable or lower prices may eat into this company's market share.

The brand's visibility is heavily influenced by algorithms on online marketplaces and the company's ability to secure promotions with these venues. If the company loses its presence in these venues or has major issues with them, its revenue will suffer.

The majority of this company's products are manufactured in other countries, with recent shifts to India and Vietnam. Supply-chain issues, currency fluctuations, and changes in import duties continue to be risks for the company.

If you’re looking to Buy
Sell Unlisted Shares of
boAt
,we’d love to help.