Imagine Marketing Ltd IPO

Last Updated: 10 October 2023 5:36 PM by 5Paisa

Imagine Marketing, parent company of BoAt, has filed its preliminary papers with SEBI to raise Rs 2,000 crore via an initial public offering (IPO).
The public issue consists of a fresh issue of equity shares, aggregating up to Rs 900 crore and an offer for sale aggregating up to Rs 1,100 crore. boAt co-founders Aman Gupta and Sameer Mehta will dilute their stakes worth Rs 150 while South Lake Investment Ltd will also sell shares worth Rs 800 crore.
Axis Capital Limited, BofA Securities India Limited, Credit Suisse Securities (India) Private Limited and ICICI Securities are the book running lead managers.

Objective of the Issue 
The proceeds from the issue will be used towards:
1. Repayment/prepayment of certain borrowings availed of by the company 
2. General corporate purposes
 

Imagine Marketing is one of the largest Indian digital-first brands in terms of revenue from operations for the FY21. The company offers a wide-ranging, high-quality and aspirational lifestyle-focused consumer products at accessible price points. The company was founded in 2013 and later in 2014 its flagship brand “boAt” was launched. 

The products offered across a variety of price points and customer segments across multiple product categories, include 
1. Audio (wired headphones and earphones, wireless headphones and earphones (neckbands), true wireless stereo (“TWS”), Bluetooth speakers and home theatre systems and sound bars), 
2. Wearables (smartwatches),
3. Gaming accessories (wired and wireless headsets, mouse and keyboards), 
4. Personal care appliances (trimmers and grooming kits) and 
5. Mobile accessories (chargers, cables, power banks and other accessories)

Moreover, in terms of volume, the company commands a market share of 48% and 23%, in both wireless hearables and smartwatch segments, respectively, which has consistently increased over time, and it had a market share of 30% and 13% by value, in the branded wireless hearables and smartwatch markets, respectively.

The company benefits from collaborations and relationships with industry participants such as Qualcomm Bharat FIH Ltd, Google, Dolby International AB, Dolby Laboratories Licensing Corporation, Airoha Technology Corp. and Realtek Semiconductor Corp and integrate components and technology developed by them in its products, thereby enabling to offer wide-ranging, high quality and aspirational lifestyle-focused consumer products at accessible price points.

The company has a diverse set of manufacturers and product developers across China, Vietnam and India and have entered into exclusive agreements with a number of them to manufacture products using design specifications and standards established by the company.
 

Peer Comparison