boAt parent files for ₹2,000 cr share sale

Warburg Pincus-backed Imagine Marketing, the parent of smartwatch and audio accessories brand boAt, has filed draft papers with the market regulator to raise up to ₹2,000 crore through a public listing, seeking to join a rush of companies tapping the primary market.

The initial public offering (IPO) will comprise a fresh issue of shares worth up to ₹900 crore and an offer for sale (OFS) of up to ₹1,100 crore, the New Delhi-based company said in a regulatory filing. Mint first reported about the IPO plans in September last year.

The company may separately raise up to ₹180 crore through a private placement, preferential offer or any other method to anchor investors, ahead of the IPO.

As per the draft papers, Warburg Pincus, which invested in the company through one of its affiliates, South Lake Investment, will sell shares worth ₹800 crore in the secondary offering, while promoters Aman Gupta and Sameer Mehta will sell shares worth ₹150 crore each.

Mehta and Gupta hold 28.26% stake each in the company. Warburg Pincus is the largest shareholder with 36.48% stake. Other financial investors include Fireside Ventures (3.76% stake) and Qualcomm Ventures (2.6% stake).

The company plans to use up to ₹700 crore of the IPO proceeds to repay loans and the remainder for general corporate purposes.

Imagine Marketing said it may allocate “up to 60% of the QIB Portion to Anchor Investors on a discretionary basis”. Also, a third of the anchor investor portion will be reserved for domestic mutual funds.

BoAt’s products range from headphones, fitness wearables, smartwatches, gaming controllers to charging cables, portable battery packs, and other mobile accessories.

The company relies on contract manufacturers to make its products.

Axis Capital Ltd, BofA Securities India Ltd, Credit Suisse Securities (India) Pvt. Ltd and ICICI Securities Ltd are the book running lead managers.

Early last year, Imagine Marketing raised $100 million in its Series B funding round from Warburg Pincus. The company has raised close to $116 million in funding till date.