boAt, Urban Company Get SEBI Nod For IPO

Imagine Marketing, the parent of wearables and audio brand boAt, has received markets regulator SEBI’s approval for its IPO. This comes over four months after the company pre-filed its DRHP via the confidential route.

Besides, consumer services unicorn Urban Company has got the greenlight from SEBI for its INR 1,900 Cr IPO.

As per the latest update on SEBI’s website, the regulator issued observation letters to boAt on August 1 and Urban Company on August 29.

In SEBI’s parlance, issuance of an observation letter refers to go ahead for the IPO.

Urban Company plans to raise up to INR 429 Cr via a fresh issue of shares. Besides, its public issue will comprise an OFS of up to INR 1,471 Cr. OFS will see capital dilution from existing investors like Accel worth INR 433 Cr, Elevation Capital worth INR 346 Cr and Tiger Global worth INR 303 Cr, respectively.

It plans to use the proceeds from the fresh issue towards new technology and cloud infrastructure development, lease payments for office spaces and for marketing and brand-building activities.

Urban Company turned profitable in the run up to its IPO, posting a net profit of INR 242.6 Cr for the nine months ended December 31, 2024 on the back of a deferred tax gain of INR 215.5 Cr. Without the one-time gain, it would have posted a profit of INR 27.1 Cr.  Its revenue from operations rose 41% to INR 846 Cr during the period under review from INR 600.9 Cr a year ago.

While boAt’s issue size is not known yet because of the confidential filing, the company received approval from its board earlier this year to raise up to INR 500 Cr via the fresh issue.

With this, the two companies have joined the growing list of new-age tech companies, including Groww, PhysicsWallah, WeWork India, among others, which have got SEBI approval for their IPOs.