Imagine Marketing Limited, the parent company of wearables and audio brand BoAt, is sailing back to the markets, this time with a smaller, steadier ship. The company has filed its updated draft red herring prospectus (DRHP) with SEBI to raise Rs 1,500 crore through an initial public offering that blends a Rs 500-crore fresh issue with a Rs 1,000-crore offer-for-sale (OFS).
This marks a scale-down from its earlier attempt in January 2022, when boAt had filed for a Rs 2,000-crore IPO comprising a Rs 900-crore fresh issue and a Rs 1,100-crore OFS. The trimmed issue size reflects a more measured approach as the company re-enters the market after returning to profitability and tightening its cost sails.
Who’s selling and who’s steering the ship?
Founders Aman Gupta and Sameer Mehta, along with early backers, are set to part with some holdings through the OFS. Gupta plans to sell shares worth up to Rs 225 crore, Mehta up to Rs 75 crore, while South Lake Investment, backed by Warburg Pincus, will offload up to Rs 500 crore. Among other investors, Fireside Ventures will sell shares worth up to Rs 150 crore and Qualcomm Ventures up to Rs 50 crore.
Despite these partial exits, the founders will retain majority control. The IPO is being managed by ICICI Securities, Goldman Sachs, JM Financial, and Nomura.
What’s the plan for the funds?
Imagine Marketing plans to deploy the fresh issue proceeds to strengthen working capital and boost brand visibility. About Rs 225 crore has been earmarked for working capital, Rs 150 crore for marketing and brand-building, while the rest will go toward general corporate purposes and potential acquisitions.
The company may also explore a pre-IPO placement of up to Rs 100 crore.
How do the numbers stack up?
After two turbulent years, boAt has finally steadied its balance sheet. The company swung to a net profit of Rs 61.1 crore in FY25 on revenue of Rs 3,073.3 crore, compared with losses of Rs 79.7 crore in FY24 and Rs 129.5 crore in FY23.
While revenue stayed broadly flat — Rs 3,376.8 crore in FY23 and Rs 3,117.7 crore in FY24, margins saw a marked improvement. EBITDA margin rose to 4.64 percent in FY25 from 0.25 percent in FY24, aided by cost control, better procurement, and lower finance expenses. Purchases of stock-in-trade dropped to 67.4 percent of revenue from 72.9 percent in the previous year.
The momentum carried into FY26, with Rs 628.1 crore in revenue and Rs 21.4 crore in net profit in the first quarter.
What’s driving the business?
BoAt’s dominance remains anchored in its audio segment, which contributed over 79 percent of FY25 revenue. Wearables, once seen as the next growth frontier — have stumbled, with revenue from the category plunging from Rs 901.6 crore in FY23 to Rs 330.4 crore in FY25, marking a steep decline of about 40 percent year on year.
The company attributed this slump to slower industry-wide demand, rising competition, and falling average selling prices. While boAt continues to lead in personal audio with over 26 percent market share by value, its dependence on this single category exposes it to concentration risk.
What are the risks that could rock the boat?
The DRHP highlights several challenges that could weigh on BoAt’s growth story. A significant portion of the company’s sales still depends on two large e-commerce platforms, Amazon and Flipkart. Any changes in their policies, fee structures, or promotional tie-ups could directly impact sales volumes and visibility.
The slowdown in the wearables market poses another concern. Demand in the category has softened industry-wide, eroding average selling prices and margins. BoAt’s ability to revive growth through innovation and new product categories will be critical.
The company also remains heavily dependent on its audio portfolio, which accounts for the majority of its revenue. This limited diversification could magnify the impact of any downturn in consumer sentiment or intensified competition. Meanwhile, despite recent improvement, margins remain thin and vulnerable to fluctuations in input costs, currency movements, and the company’s continued reliance on aggressive marketing.
So, what’s the bottom line?
Imagine Marketing’s IPO marks the comeback of one of India’s most recognisable consumer-tech brands — leaner, profitable, and more focused after a volatile two-year stretch. With tighter operations and a renewed push for brand growth, boAt is looking to prove it can sustain its leadership in an increasingly crowded market.
But challenges persist. A slowing wearables segment, heavy dependence on online platforms, and narrow product diversification mean the company will need to innovate quickly and execute with discipline. The IPO, then, is not just a return to the markets, it’s a test of whether BoAt can keep its turnaround story afloat in the long run.
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