Overview
Imagine Marketing, the parent company of the popular consumer electronics brand boAt, has received SEBI approval for an IPO aimed at raising ₹1,500 crore. This move marks a key milestone as boAt prepares to enter the public markets. The IPO will include a fresh issue of ₹500 crore and an offer for sale (OFS) of ₹1,000 crore by existing promoters and investors.
Offer Snapshot
- IPO size: ₹1,500 crore (₹500 crore fresh issue + ₹1,000 crore OFS)
- Promoters and investors selling shares worth ₹1,000 crore including Aman Gupta (₹225 crore), Sameer Ashok Mehta (₹75 crore), South Lake Investment (₹500 crore), Fireside Ventures (₹150 crore), and Qualcomm Ventures (₹50 crore)
- Fresh funds proceeds allocation: ₹225 crore for working capital, ₹150 crore for brand and marketing expenses, remainder for general corporate purposes
- Registrar: MUFG Intime India Pvt Ltd
- Book Running Lead Managers: ICICI Securities, Goldman Sachs India, JM Financial, Nomura India
- The IPO follows a previous confidential draft filed in April 2025 and SEBI clearance in August 2025.
Financials
- Imagine Marketing turned profitable in FY25 with a net profit of ₹61.8 crore, after losses in prior years
- Net profit for Q1 FY26 was ₹21.4 crore
- Revenue in FY25 stood at ₹3,073 crore with steady margins amidst a competitive electronics market
- The company offers a diversified product portfolio including audio devices, wearables, smartwatches, grooming gadgets, and mobile accessories
- Distribution channels span online marketplaces, direct-to-consumer websites, and offline retail partners
Business Highlights
- Founded in 2013, boAt is a leading affordable lifestyle technology brand in India noted for mass premium positioning
- Strong brand recall with innovation-driven product lines in audio and wearables segments
- Growing market penetration amidst rising demand for consumer electronic products in India
- Strategic backing from significant investors including Warburg Pincus and Qualcomm Ventures supports scale-up
- IPO proceeds will help accelerate working capital needs and amplify brand visibility through marketing.
Use of Proceeds
- ₹225 crore to bolster working capital requirements ensuring operational agility
- ₹150 crore focused on brand building and marketing to deepen consumer engagement and market presence
- Remaining proceeds for general corporate purposes, ensuring flexibility for growth initiatives
Risks
- Competitive consumer electronics market with rapid product cycles and evolving tech trends
- Dependence on third party brands and manufacturers in global supply chains may affect availability and margins
- Market sentiment and valuation concerns in a volatile IPO environment could impact listing performance
- Potential regulatory changes affecting import duties and tech standards
What to Watch Next
- Finalization of IPO price band and launch dates following SEBI approval
- Subscription levels, especially from retail and institutional investors during the IPO window
- Listing day pricing performance and grey market premium movements post subscription
- Expansion plans post IPO to leverage public capital for growth and product innovation
FAQs
Q1: What is the size of the boAt parent Imagine Marketing IPO?
The IPO is set to raise ₹1,500 crore, including a ₹500 crore fresh issue and ₹1,000 crore offer for sale.
Q2: How will the IPO proceeds be used?
The company plans to use ₹225 crore for working capital, ₹150 crore for brand marketing, and the rest for general corporate purposes.
Q3: Who are the key selling shareholders in the OFS?
Promoters and investors like Aman Gupta, Sameer Ashok Mehta, South Lake Investment, Fireside Ventures, and Qualcomm Ventures are selling shares totaling ₹1,000 crore.
Q4: What is the financial performance of Imagine Marketing?
The company turned profitable in FY25 with a net profit of ₹61.8 crore and revenue of ₹3,073 crore.
Q5: What kind of products does boAt offer?
boAt offers a variety of audio devices, wearables, smartwatches, personal grooming gadgets, and mobile accessories.
The allocation of funds towards brand and marketing shows that Imagine Marketing is thinking ahead and planning for long-term growth. Given boAt’s strong consumer presence, this IPO could be a key step in cementing their position in India’s tech ecosystem.
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