boAT IPO Review, Date, Price, Allotment Details

boAT IPO Review, Date, Price, Allotment Details

boAt, established in 2016 by Sameer Mehta and Aman Gupta, has rapidly ascended to prominence in India’s audio and wearables sector. The company offers a diverse array of products, including headphones, earphones, smartwatches, speakers, and travel chargers. By fiscal year 2023, boAt achieved a significant milestone, recording net sales of ₹4,000 crore.

Market Position and Financial Performance

boAt has solidified its position as a leader in the personal audio category, ranking as the number two player globally in earwear. The company’s strategic focus on the smartwatch segment aims to replicate its success in personal audio, with the objective of becoming a global leader in this category as well.

In fiscal year 2023, boAt reported operating revenue of ₹3,376.7 crore, marking an 18% year-on-year increase. However, the company experienced a net loss of ₹129.4 crore, attributed primarily to investments in local manufacturing initiatives.

Manufacturing and Expansion

boAt has made substantial investments in India’s manufacturing ecosystem, collaborating with electronic manufacturing services (EMS) providers, including Dixon Technologies, to produce its audio and wearables products domestically. This strategic move aims to enhance supply chain efficiency and reduce dependency on imports.

IPO Plans

In July 2023, co-founder Aman Gupta indicated that boAt is not in a hurry to pursue an initial public offering (IPO). The company is considering a listing in the fiscal years 2025-2026, emphasizing that it is well-capitalized and does not have an immediate need for funds.

Earlier, in 2022, boAt filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for a ₹2,000 crore IPO but later withdrew the application. The company is now contemplating a strategic fundraise, potentially involving a global fund, a sovereign fund, and a strategic investor, with the aim of enhancing financial metrics and profitability before proceeding with an IPO.

Conclusion

boAt’s rapid ascent in the audio and wearables market, coupled with its strategic investments in manufacturing and product diversification, underscores its robust growth trajectory. While the company is not currently pursuing an IPO, its plans for future public listing and potential strategic partnerships indicate a forward-looking approach to capitalizing on market opportunities

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