IPO Alert: Boat-owner Imagine Marketing prepares for a ₹2,000 crores share sale

Indian market is one of the fastest-growing markets in the consumer device segments. It is divided into hearable, wearables, mobile accessories etc.

Hearables and wearables have been the fastest-growing segments in the consumer devices market growing at a CAGR of 32% and 34% respectively from 2018 to 2020. Due to improved technology and logistics, the consumer devices market is projected to grow at 15-25% CAGR to reach ₹1,400-1,800 billion by 2025.

Imagine Marketing, which owns the Boat brand of earphones and smartwatches, filed DRHP for an initial public offer of up to ₹2,000 crores with market regulator SEBI.

According to the DRHP, the IPO would consist of a fresh issue of shares worth up to ₹900 crores, an offer for sale of shares worth up to ₹1,100 crores.

Boat plans to utilize an amount of ₹700 crores from the net proceeds towards prepayment and repayment of the loans availed by the company and the remaining amount would be used for general corporate purposes.

Company Overview

Imagine Marketing is a digital-first consumer products company and one of the largest Indian digital-first brands in terms of revenue from operations for the financial year 2021.

The Delhi-based company products range from headphones, fitness wearables, smartwatches, gaming controllers to charging cables, portable battery packs, and other mobile accessories.

Boat faces competition from legacy audio and foreign brands, emerging Indian brands, Chinese smartphone OEMs, as well as private labels of marketplaces.

Key Numbers

For the year ended 31 March 2021, Boat had total revenue of ₹1,313.7 crores compared to ₹609.1 crores in the previous year. The company had a net profit of ₹86.5 crores versus 47.7 crores in the previous year of the same quarter.