The company is planning to raise ₹500 crores via a fresh issue and an Offer-for-Sale up to ₹1000 crores by existing investors.
The OFS includes:
- ₹75 crore worth of equity shares by Sameer Ashok Mehta
- ₹225 crore by Aman Gupta
- ₹500 crore by South Lake Investment Limited (Promoter Selling Shareholder)
- ₹150 crore by Fireside Ventures Investment Fund-I (under Fireside Ventures Investment Trust)
- ₹50 crore by Qualcomm Ventures LLC
The proceeds of ₹225 crore raised from the fresh issue will be utilized to meet its working capital needs. A fund of ₹150 crore for brand promotion and marketing to increase product and brand visibility. Lastly, the remaining amount will be used for the company’s general corporate purposes.
This is the company’s second attempt to launch its IPO. In January 2022, the company filed its confidential draft papers for a ₹2,000 crore IPO, which included a fresh issue of ₹900 crore and an OFS of ₹1,100 crore.
Founded by Aman Gupta and Sameer Mehta in 2013, Imagine Marketing provides products like audio devices, smart wearables, personal grooming items, and mobile accessories. So far in 2024, Swiggy and Vishal Mega Mart have launched their IPOs after first making confidential filings.
Instead of the traditional rule of filing the DRHP, where the companies must launch their IPOs within 12 months of SEBI’s approval. While the pre-filing route companies get 18 months from SEBI’s approval to launch their IPO, this is beneficial to many companies.
According to the market expert, the confidential pre-IPO route makes IPOs more flexible and less stressful. This route allows the company to change the issue size by up to 50%.
ICICI Securities, Goldman Sachs, JM Financial, and Nomura are the book-running lead managers to the issue.
In FY25, boAt turned profitable with a net profit of ₹60 crore, after they reported a major loss of ₹79.7 crore in FY24 and ₹129.5 crore in FY23. While in FY25, the company also reported a revenue of ₹3,097.8 crore from operations.
