Ahead of what is said to be the first Indian D2C startup switching for a public listing, boAt has passed a resolution to convert itself into a public company. According to the latest regulatory filing, in a board meeting dated January 18, 2022, the company has passed a resolution to convert its parent company name from Imagine Marketing Private Limited to Imagine Marketing Limited.
According to the DRHP, the IPO would consist of a fresh issue of shares worth up to ₹900 crore, an offer for sale of shares worth up to ₹1,100 crore. South Lake Investment will sell shares worth up to ₹800 crore in Imagine Marketing’s IPO.
The company plans to utilize IPO proceeds to repay or prepay debt.
The boAt was last valued at around ₹2,200 crore when it raised ₹50 crore from Qualcomm Ventures in April last year. It is now eyeing a valuation of around 5-6 times its revenue for this fiscal, the report added. “They (Boat) are getting indications to price the IPO at revenue multiples of five to six times,” one of the people familiar with the matter told ET. “They are expected to nearly double the revenue by the end of March.”
Founded in 2016, Boat has emerged as one of the prominent homegrown D2C brands that have challenged market leaders in the earphones and wearable space. It hit a net profit of ₹78 crore in the fiscal ended March 31, 2021, on the back of ₹1,500 crore in revenue.
