boAt Gets Board’s Nod For IPO, To Raise Upto INR 500 Cr Via Fresh Issue

Consumer electronics major boAt has got its board green light to proceed with its initial public offering (IPO).

The company’s board has cleared changes in its articles of association (AoA), clearing the path for the IPO, as per boAt’s regulatory filing with the MCA.

“The company is proposing to undertake an initial public offer of the equity shares of face value of INR 1 each of the company comprising of fresh issuance of equity shares by the company and an offer for sale of equity shares by certain existing shareholders…. and list the equity shares on one or more of the stock exchanges,” the resolution passed by the board read, as per the filing. 

The IPO would comprise a fresh issue of upto INR 500 Cr, as per the filing. 

ET was the first to report the development. 

This comes days after it was reported that boAt is planning to file its draft red herring prospectus (DRHP) for its IPO via the confidential filing route. The company is said to be looking to launch its INR 2,000 Cr (around $231 Mn) IPO in the financial year ending March 2026 (FY26). 

boAt has reportedly brought in ICICI Securities, Goldman Sachs, and Nomura as the lead bankers for its public issue. It is said to be eyeing a valuation of over $1.5 Bn, though the final number will be decided later.

Notably, this is boAt’s second attempt at going public. It first filed for an IPO in 2022 but decided to not go ahead with it due to market conditions. Instead, it raised INR 500 Cr from investors like Warburg Pincus and Malabar Investments in the same year.

boAt reportedly plans to use the IPO proceeds to expand its offline presence, particularly in smaller cities.

On the financial front, boAt’s consolidated operating revenue declined over 7% to INR 3,117.7 Cr in FY24 from INR 3,376.8 Cr in the previous fiscal year, with its wearables category experiencing a significant downturn. 

Sales in the wearables segment dropped nearly 40% to INR 550.3 Cr during the year under review from INR 910.6 Cr in FY23. However, the company’s loss also narrowed 38% to INR 79.7 Cr from INR 129.4 Cr in FY23. 

Founded in 2015 by Gupta and Sameer Mehta, boAt operates in the larger audio and wearables markets and sells products such as headphones, smart watches and speakers. It is backed by the likes of Qualcomm Ventures, Ranveer Singh, Warburg Pincus, among others, and has raised about $177 Mn in funding till date.