Markets regulator SEBI has approved the initial public offering (IPO) of electronics brand boAt's parent, Imagine Marketing, according to a document from the regulator published on Tuesday.
boAt, known for its headphones and smart watches, confidentially filed for an IPO in April. The Warburg Pincus-backed firm is targeting a valuation of Rs 13,000 crore, according to reports.
This marks the company's second attempt to go public. Previously, the company had filed draft papers in January 2022 for floating a Rs 2,000-crore IPO. This comprised a fresh issue of equity shares worth Rs 900 crore and an offer for sale (OFS) aggregating up to Rs 1,100 crore.
Established in 2013 by Aman Gupta and Sameer Mehta, Imagine Marketing offers a product portfolio ranging from audio gear and smart wearables to personal grooming products and mobile accessories.
Imagine Marketing's decision to opt for the confidential pre-filing route is part of a growing trend among Indian companies.
In 2024, food delivery giant Swiggy and supermart major Vishal Mega Mart successfully floated their IPOs after making confidential filings.
Market experts believe that the confidential pre-filing route provides flexibility and reduces pressure on companies to go public. Unlike the traditional route, where IPOs must be launched within 12 months of Sebi's approval, the pre-filing route allows companies to float an IPO within 18 months from Sebi's final comments.
This route also offers the flexibility to adjust the primary issue size by up to 50 percent until the Updated Draft Red Herring Prospectus (UDRHP) stage, they added.
Apart from boAt, 12 other firms, including Urban Company, which offers mobile app-based beauty and home care services, have received Sebi's approval to raise funds through Initial Public Offerings (IPO), an update with the regulator showed on Tuesday.
Others obtaining the regulatory clearance are -- Juniper Green Energy, Allchem Lifescience, Omnitech Engineering, KSH International, Ravi Infrabuild Projects, Mouri Tech, Priority Jewels, Corona Remedies, Om FreightForwarders, Jain Resource Recycling and Pace Digitek.
These companies, which filed their preliminary IPO papers between March and June, obtained Sebi's observations during August 1-29, the update showed.
In Sebi's parlance, obtaining its observations means go ahead to launch public issues.
The approval comes at a time when the primary market is experiencing strong interest from both issuers and investors across various sectors. So far this year, 50 companies have been listed on the bourses, with over a dozen firms making their debut in August itself.
Urban Company is looking to mobilise Rs 1,900 crore through its proposed IPO. This includes raising Rs 429 crore through selling new shares, and existing investors plan to sell stakes worth Rs 1,471 crore, according to the Draft Red Herring Prospectus (DRHP).
Those selling shares under the Offer For Sale (OFS) route are -- Accel India and Elevation Capital, Bessemer India Capital Holdings II Ltd, Internet Fund V Pte. Ltd and VYC11 Ltd.
All these companies would list their shares on the BSE and NSE.
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