Imagine Marketing Limited, the parent company of consumer electronics brand boAt, has filed an Updated Draft Red Herring Prospectus (UDRHP) with the Securities and Exchange Board of India (SEBI) for its proposed Rs 1,500 crore initial public offering (IPO). The offer comprises a fresh issue of Rs 500 crore and an offer for sale (OFS) of Rs 1,000 crore, according to the filing.
The selling shareholders in the OFS include the company’s promoters, Sameer Ashok Mehta, Aman Gupta, and South Lake Investment Ltd, along with Fireside Ventures Investment Fund-I and Qualcomm Ventures LLC. The issue will be managed by ICICI Securities Limited, Goldman Sachs (India) Securities Private Limited, JM Financial Limited, and Nomura Financial Advisory and Securities (India) Private Limited, who are acting as the book-running lead managers.
Founded in 2013 and headquartered in Mumbai, Imagine Marketing Limited designs, markets, and sells consumer electronic products under the boAt brand. Its product portfolio includes audio devices such as earphones, headphones, and speakers; wearables like smartwatches and fitness trackers; and mobile accessories, including chargers and cables. The company primarily targets the mid-range consumer electronics market and distributes its products through online marketplaces, its own website, and offline retail partners.
How will the proceeds be utilised?
The company plans to utilise the net proceeds from the IPO for three primary purposes: funding working capital, brand and marketing expenditure, and general corporate purposes.
It has proposed to deploy Rs 225 crore towards working capital requirements, which will support its business expansion, meet inventory and supply chain needs, and strengthen relationships with vendors and retail partners. The filing notes that this allocation is critical to maintaining sufficient stock levels across boAt’s fast-moving product categories, including audio devices, wearables, and charging accessories. Additionally, the board has approved the utilisation of these funds in rising increments up to FY28.
A further Rs 150 crore has been earmarked for brand and marketing initiatives, aimed at enhancing boAt’s visibility and consumer engagement. These funds will be used for advertising campaigns, influencer collaborations, and sponsorships, alongside expanding its digital and offline marketing footprint.
The balance proceeds from the issue will be used for general corporate purposes, which may include investment in subsidiaries, funding potential acquisitions, or meeting other strategic and administrative expenses. As per SEBI’s regulations, this component will not exceed 25% of the gross proceeds.
Cap Table
| SHAREHOLDERS | PERCENTAGE OF EQUITY SHARE CAPITAL |
| Aman Gupta | 24.76% |
| Sameer Ashok Mehta | 24.75% |
| South Lake Investment Ltd |
39.35% |
| Qualcomm Ventures LLC | 2.28% |
| Fireside Ventures Investment Fund-I (Scheme of Fireside Ventures Investment Fund) | 3.28% |
| Malabar Select Fund | 1.20% |
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