D2C Brand boAt set to file DRHP of INR 2000 crore at a valuation of $2 billion
- ByStartupStory | January 26, 2022
D2C (direct-to-consumer) audio electronics brand boAt has revealed its intention to file the draft red herring prospectus (DRHP) with the regulatory authorities while seeking to raise an initial public offering (IPO) worth INR 2000 crore. With this listing, boAt’s valuation will rise to $1.5-2 billion.
The parent company of boAt, Imagine Marketing Pvt. Ltd has recently converted itself to a public company in an attempt to facilitate the IPO. The board of directors of the brand have also approved the plan of launch of the IPO. Sources have revealed that the DRHP will be filed within the next two days.
In order to facilitate the recent IPO, the private equity major Warburg Pincus which has the largest stake of 36% in the brand will divest shares worth INR 700-800 crore in the IPO. The founders, Aman Gupta and Sameer Mehta will also dilute a minor part of their holding. The issue will be a mix of fresh stock as well as an offer for sale.
Sources, however, said the final IPO pricing may still change depending on broader external market conditions. Recently listed new-age Indian companies have seen their stocks getting hammered in recent days as part of a broader market fall.
Founded in 2016, boAt has emerged as one of the prominent homegrown D2C brands that have challenged market leaders in the earphones and wearables space. It clocked a net profit of Rs 78 crore in the fiscal ended March 31, 2021, on the back of Rs 1,500 crore in revenue. The audio brand is among the first set of D2C brands that started online-only and are now expanding their presence through offline channels as well.
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