boAt Plans to Launch ₹2000 Crore IPO for Fiscal Year 2025-26

The Indian consumer electronics company boAt is preparing to start an initial public offering (IPO) for the fiscal year 2025-26. Through this IPO, the company plans to receive INR 2,000 Cr worth of funds, equivalent to $231 million. The move represents boAt's second attempt at an IPO since its previous attempt in 2022 was withdrawn because of unpleasant market conditions.

The upcoming draft red herring prospectus (DRHP) of boAt will enter a confidential review without public disclosures. The Securities and Exchange Board of India (SEBI) created confidential filing as a new pathway in 2022 to let companies protect business details which avoids disclosure to opponents and premature public attention along with legal problems.

Valuation and Financials

During its attempt to go public, boAt produced an FY24 operating profit of INR 3,117.7 Cr coupled with a net loss of INR 79.7 Cr. The company’s revenue decreased 5% to ₹3,285 crore throughout FY24 as the company reduced its losses by 50% to reach ₹70.8 crore. The company experienced revenue decline but accomplished a 38.4% reduction in its consolidated net loss throughout the year.

Market Position and Investors

The company was founded in 2016, and ever since, boAt has established itself as a leading force within the Indian audio products combined with the wearables market. The wearable market segment holds a 26.7% leadership position during the second quarter of 2024. Over time, the company achieved more than $176 million (₹1525 crores) in funding with support from Qualcomm Ventures and Warburg Pincus.

The company has achieved success in its wearables from strategic investments in pricing and marketing, which has also led to profitability. The company expects FY25 PBT and EBITDA margins to show improvement because of warranty cost optimisation programs.