Imagine Marketing Limited is the entity that owns one of the most popular and recognizable brands in India - boAt. After taking over the Indian consumer electronics market by storm, the company is all set to create ripples in the Indian stock market as well.
Imagine Marketing Limited has indicated its intent to go public by filing a draft red herring prospectus with the market regulator SEBI. Here’s what we know regarding the upcoming boAt IPO.
Established in 2013, Imagine Marketing Limited is a consumer products company with a digital-first approach. Most of its budget-friendly products are marketed under its flagship brand - boAt. In addition to boAt, the company also has other brands under its belt such as Red Gear, TAGG, Misfit and DEFY.
Some of the key products in the company’s portfolio include a wide range of audio devices, wearables, gaming accessories, personal care appliances and mobile accessories. According to a RedSeer report, the company is a market leader in terms of volume and value across the audio devices and wearables segments.
Being a digital-first company, most of Imagine Marketing Limited’s sales occur through various online channels such as Amazon, Flipkart and its own websites. However, the company also has a strong and ever-growing retail network of more than 51 distributors and 180 sub-distributors spread across 32 locations in India.
According to the draft red herring prospectus filed by Imagine Marketing Limited on January 26, 2022, the key financial metrics of the company are as follows.
(figures are in ₹ crores)
|Particulars||As of September 30, 2021||FY21||FY20||FY19|
|Equity Share Capital||632.9||464.1||71.5||23|
|Diluted Earnings Per Share (EPS)||11.71||7.97||4.42||0.79|
|Return on Net Worth (RoNW)||18.69%||18.64%||66.82%||34.80%|
|Net Asset Value (NAV) per equity share||62.97||46.18||7.15||2.31|
Note: Other than the Diluted EPS, NAV per equity share and Return on Net Worth, all other figures are expressed in ₹ crores.
Imagine Marketing Limited has listed out some of the key strengths that it possesses that give its business an edge over its competitors. Here’s a closer look at a few of them.
According to the draft red herring prospectus, Imagine Marketing Limited realises the following as key risks that threaten the company.
As you know by now, Imagine Marketing Limited has only filed its draft red herring prospectus with the market regulator SEBI. This effectively means that there’s not much relevant information on the company’s IPO. Here’s what we know so far about the public issue.
The total issue size of the boAt IPO is slated to be ₹2,000 crores, out of which about ₹900 crores would be from a fresh issue of equity shares. The remaining ₹1,100 crores would be from an Offer for Sale (OFS) from the company’s two promoters and an investor-selling shareholder.
The public issue of Imagine Marketing Limited consists of an employee reservation portion amounting to ₹1.5 crores. Additionally, around 50% of the issue is reserved for Qualified Institutional Buyers (QIBs), 35% for retail investors and the remaining 15% has been reserved for Non-Institutional Investors (NIIs).
The company plans to use the funds from the sale of its equity shares to satisfy the following two objectives.
It has been more than a year since Imagine Marketing Limited filed its draft red herring prospectus. The company may try to ramp up its efforts to go public once FY23 comes to a close. However, the success of the boAt IPO squarely depends on its valuations. The company must refrain from setting its IPO price too high. That said, the pricing of the IPO and other details regarding the issue will be revealed only once the company files the final prospectus.
Now, if you’re interested in subscribing to the upcoming IPO of Imagine Marketing Limited, you need a demat account in your name. If you don’t have one, Motilal Oswal can help you out. Simply visit the website of Motilal Oswal and fill out an online application to open a demat account and a trading account. The account opening process is simple, quick and can be completed in no time.