boAt gets SEBI Nod for INR 2,000 Cr IPO

boat cofounders

The Securities and Exchange Board of India (SEBI) has approved the INR 2,000 crore IPO of Delhi-based consumer electronics brand boAt.

The D2C brand’s offer, according to its Draft Red Herring Prospectus (DRHP), includes a fresh issue of shares worth up to INR 900 crore and an offer-for-sale (OFS) worth up to INR 1,100 crore.

The boAt was the first Indian D2C brand to file a DRHP for an IPO in January 2022. Inc42 was the first to break the story.

Founded in 2016 by Aman Gupta and Sameer Mehta, boAt is an audio D2C brand that manufactures products including earphones, headphones and speakers, among others.

According to the DRHP, Gupta and Mehta will each sell up to INR 150 crore in the OFS, while Warburg Pincus will sell up to INR 800 crore.

With a 36.48% stake through its affiliate South Lake Investments, Warburg Pincus is the startup’s largest stakeholder. Qualcomm Ventures owns a 2.6 % ownership in the company, while Fireside Ventures owns 3.76%.

During the April-September period of FY22, boAt generated more than INR 1,553.15 Cr in sales, the majority of which came from third-party marketplaces, while its profit was INR 158.41 Cr.

In FY21, boAt reported earnings from operations of INR 1,320.3 crore, up from INR 609.9 crore in FY20. During the year, it made a profit of INR 118.22 crore.

According to the DRHP, boAt may pursue a pre-IPO investment round. It is in talks with Book Running Lead Managers (BRLMs) and expects to fund up to INR 180 crore through pre-IPO investments.

Additionally, Qualcomm Ventures, Warburg Pincus, InnoVen Capital, and Fireside Ventures have all backed the business, which has raised more than $116 million in six fundraising rounds.

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