Audio D2C brand boAt gets SEBI approval for its INR 2,000 Cr IPO

The Securities and Exchange Board of India (SEBI) has given Delhi-based consumer electronics brand boAt its nod for its INR 2,000 Cr IPO.

According to its draft red herring prospectus (DRHP), the D2C brand’s offer consists of a fresh issue of shares worth up to INR 900 Cr and an offer-for-sale (OFS) of up to INR 1,100 Cr. boAt became the first Indian D2C brand to file its DRHP for an IPO in January 2022.

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

As per its DRHP, Gupta and Mehta will sell shares worth up to INR 150 Cr each in the OFS. Warburg Pincus that is the largest shareholder in the startup with a 36.48% stake through its affiliate South Lake Investments, will sell shares worth up to INR 800 Cr.

Fireside Ventures holds a 3.76% stake, while Qualcomm Ventures has a 2.6% stake in the startup.

boAt notched up more than INR 1,553.15 Cr in sales in the April-September period of FY22, with most of it coming from third-party marketplaces. Its profit stood at INR 158.41 Cr during the period.

In FY21, boAt posted INR 1,320.3 Cr in earnings from operations, as compared to INR 609.9 Cr in FY20. Its profit stood at INR 118.22 Cr during the year.

The DRHP also revealed that boAt might go for a pre-IPO funding round. It has been in talks with Book Running Lead Managers (BRLMs) and is likely to raise up to INR 180 Cr in pre-IPO placements.

The startup has raised more than $116 Mn across six funding rounds, backed by marquee investors such as Qualcomm Ventures, Warburg Pincus, InnoVen Capital and Fireside Ventures.