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Imagine Marketing (BOAT) IPO Details: Date, Share Price, Size, GMP & Review

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Imagine Marketing Limited (boAt)– About the Company

Imagine Marketing Limited better known as " boAt " was founded in 2013 and is one of the leading electronics makers, offering a wide range of electronic and wearable devices such as Smartwatch, headphones, earphones, Bluetooth speakers, home theatre or audio systems, mobile accessories and various lifestyle related digital products with a brand image.

Imagine Marketing Limited is earning its major revenue from the audio segment but now the contribution is increasing in other segments like wearables and other segments too. Imagine Marketing Limited is one the largest digital-first brands by revenue in FY21 and has established market leadership in the smartwatch and audio segment.

Since 2019, it has maintained its market leadership in various segments with a market share of 48% in wireless hearables by volume and 30% by value and also maintained the #1 position in this category with a consistent increase in market share making one of the favourite brands also known for launching the innovative products and competitive prices.

Imagine Marketing Limited IPO Objectives

The main objective of Imagine Marketing Limited's (boAt) IPO is to raise funds for repaying the debts and borrowing. However, the part of the payment will be also used for general corporate purposes.

Imagine Marketing Limited IPO Details:

IPO Open Date To be Updated
IPO Close Date To be Updated
Listing Date To be Updated
Face Value Rs 1 per share
Price To be Updated
Lot Size To be Updated
Issue Size Rs 2000 crore
Offer For Sale Rs 1100 crore
Fresh Issue Rs 900 crore
Issue Type Book Built Issue IPO
Listing At BSE & NSE
QIB Shares Offered Not more than 50% of the Offer
NII (HNI) Shares Offered Not less than 15% of the Offer
Retail Shares Offered Not less than 35% of the Offer

 

Imagine Marketing Limited IPO (boAt) Issue Price & Size

Imagine Marketing Limited's IPO issue price has not yet been announced by the company, hence it is not known yet. As per the DRHP, the total issue size of Imagine Marketing Limited IPO is Rs 2000 crore, out of which Rs 900 crore will be a fresh issue and the remaining Rs 1100 crore will be offered for sale by the promoters and existing shareholders of the company.

Imagine Marketing Limited (boAt) IPO Launch Date

The launch date of Imagine Marketing Limited's IPO is not known as it is not officially declared by the company. As soon as the bidding date is open it will be announced by the company and also updated here with the issue open and close date.

Imagine Marketing Limited Financial Statements:

Particulars (Rs in Crore) FY22 (6M) FY21 FY20 FY19 CAGR
Revenue from Operations 1,547.87 1313.72 609.11 225.85 79.80%
Other Income 5.29 6.66 0.85 0.26
Operational Cost 1208.57 1020.84 449.67 173.91
Employee Cost 17.51 14.92 6.49 13.46  
Other expenses 155.50 151.32 77.19 24.60  
EBITDA 171.57 133.30 76.61 14.14 111.20%
EBITDA Margin% 11.08% 10.15% 12.58% 6.26%  
Depreciation 3.18 3.20 1.35 0.28  
Interest 9.98 11.88 10.04 2.45  
Exceptional Items 0.00 0.00 -0.67 0.00  
PBT 158.41 118.22 64.55 11.41 118.00%
Total tax 40.05 31.68 16.75 3.38
PAT 118.37 86.54 47.80 8.04 120.80%
PAT Margin% 7.65% 6.59% 7.85% 3.56%

 

Imagine Marketing Limited's Financial Performance

The revenue of Imagine Marketing Limited stood at Rs 1547.87 crore in the first six months of the financial year 2022. The revenue from operations of the company grew at a very impressive CAGR of around 80% from FY19 to the first half of FY22.

However, thanks to better operating margins the EBITDA of the company for the same period increased at CAGR of 111% in the same period. The EBITDA Margin% stood at 11.08% in the first six months of FY22 which was trailing around 6% in FY19.

Similarly, the Profit After Tax of Imagine Marketing Limited in the first half of FY22 was Rs 118.37 crore which has shown an amazing CAGR growth of 121% from FY19 to the first six months of FY22. In FY19 the PAT of the company was only Rs 8.04 crore and the PAT margin was only 3.56% which has now improved to 7.65% showing the operational efficiency of the company.

Imagine Marketing Limited IPO Promoters & Shareholding of the Company

Sameer Mehta and Aman Gupta are the promoters of the company holding around 40% stakes each in the company. The remaining 19.32% stake is held with South Lake Investment Ltd. which can increase up to 36.48% when the preference issued by the company is converted into equity shares.

After a conversation of the preference shares into equity shares, the shareholdings of both promoters will be diluted and will become around 28.26% for each promoter. And this will happen while assuming the conversion of the Preference Shares into the Equity Shares and the exercise of vested stock options.

Imagine Marketing Limited (boAt) Shareholdings:

S.No. Name of the Shareholder No. of Shares % of pre-Offer Shareholding
1 Sameer Mehta 38,370,000 40.05%
2 Aman Gupta 38,370,000 40.05%
3 South Lake Investment Ltd. 18,510,000 19.32%
  Total 95,250,000 99.42%

 

Why Invest in Imagine Marketing Limited (boAt) IPO?

Imagine Marketing Limited or “boAt” is a well-established brand in the Indian market with a wide range of digital-first consumer products in the country. The company has ranked number one in various segments and is also a market leader in multiple categories.

Further with its aggressive marketing strategy and capability to identify consumer engagement and large market opportunities to launch lifestyle-oriented products in various categories company is likely to enjoy market leadership in various segments.

Also Read: What to Check Before Buying IPO: Things to Know & Is it Safe

The company keeps launching innovative and featured products with attractive prices and specially designed for the Indian audience. The company also aggressively markets its products targeting the highly enthusiastic and digitally-enabled tech-savvy and young audience that keeps buying such products as per the new trends in the market.

Along with this competitive edge, Imagine Marketing Limited or boat to operates with the strength to make a better position in the market. You can find below more points justifying the strength of the company with the risk factors that can affect the business of the company. Based on these factors you can decide the investment opportunities in this IPO.

Also Read: What are the Risk Factors Involved in Applying for an IPO

Strengths:

  • boAtis one of the well-known consumer brands in the Indian market with a significant market share in wireless hearables and wearable devices with market leadership across multiple fast-growing product categories.
  • The company is from a highly growing tech industry with the immense opportunity to keep introducing innovative products, as per the new trend in digital electronics products in the market.
  • To launch such innovative products, the company operates with a strong R&D team to design, develop, introduce and market the new products with strong supply chain management.
  • The founder and management of the company are highly professional and experienced with a track record of taking strategic decisions for the health growth of the company.
  • Last year in 2022, the company entered into a partnership with India's leading electronics maker “Dixon Technologies” to manufacture wireless audio devices under the "Made-in-India slogan.
  • At the financial end, the company has shown exceptional growth in the last four years in revenue as well as net earnings. From FY19 to the first six months of FY22, the revenue grew at a CAGR of 80%, while thanks to better operational efficiency the operating margins grew at a CAGR of 111%. The Net Profit of the company grew at a CAGR of 121% during the same period.

Risks:

  • In the audio, wearables and digital lifestyle products, there is already too much competition with various well-known as well as brands aggressively introducing new products at competitive prices. Hence, it is already challenging to keep the market leadership in this industry.
  • The company is operating in a highly technology-driven market that is a highly sensitive sector due to new and updated technologies introduced at rapid speed in the market making it difficult for such companies to keep launching the products with new technology to stay competitive among the rivals.
  • For the production of most of its products, the company is dependent on third-party contract manufacturers or components supplier makers.
  • And lack of long-term agreements or feasible contracts with these suppliers and manufacturers is another risk factor that a company can face during disagreements.
  • The major revenue and market leadership in the wearables and audio category are also making it risky for the company if any kind of demand and competitors' dominance can affect the revenue of the company.
  • Moreover, at the selling end, any kind of unfavourable condition in the consumer market or disturbance in its relationships with offline distributors or with online marketplaces can also affect the revenue growth of the company in the future.
  • At the financial end, the company has performed well and improved its operating as well as net margins, but owing to the rise in the cost of raw materials and input cost it might be difficult if the operating cost of the company increases. It can affect the operating and net margins of the company.

Imagine Marketing Limited (boAt) IPO Grey Market Premium

The GMP of Imagine Marketing Limited IPO is not known as the IPO price is not declared because the GMP is defined as per the price band of the shares. GMP is the market price of shares in the grey market with the premium over the issue price.

Also Read: What is Grey Market Premium in IPO: How is GMP Calculated &Reliable

The GMP can increase or decrease and keeps fluctuating as per the demand and supply of the unlisted shares in the grey market. However, the Grey Market Premium is not the reliable or true price of shares of any unlisted company but can be considered to know how much demand for shares in the market and based on the same the listing price can be expected.

Imagine Marketing Limited IPO (boAt) Review & Analysis

From the fundamental perspective, "boAt" is the market leader in wearables and audio devices with the brand recognition of an Indian company. In a few segments is enjoying the number one slot with the tag of the fastest-growing company in India.

And this growth is clearly visible in the robust financial growth of the company in the last three years. The operating profit and net profit of the company have grown more than 100% CAGR with improved margins making the company considerable to invest.

At the valuation end, due to not availability of the share price of Imagine Marketing Limited, it is not possible to evaluate the company. And when the share price is not known then it is also not possible to compare the share price of the company with the competitors.

However, when the Imagine Marketing Limited (boAt) IPO price is declared it would be possible to evaluate the share and decide whether to apply or not in the IPO. However, if the IPO price is issued at a discount price or at a lower valuation compared to its peer group companies, then you can apply it with the listing gain or long-term point of view.

However, if the Imagine Marketing Limited (boAt) IPO is issued at a very high premium price and expensive in terms of valuation compared to its listed competitors then either you can avoid the IPO or apply to invest with the perspective of keeping the shares as a long-term investment to get the good returns.

How to Apply for Imagine Marketing Limited (boAt) IPO?

To apply in any IPO or buy and sell the shares of any company, you need a trading account and demat account with a broker. If you have both the account you can easily apply online from your broker’s platform. However, if you don’t have these accounts, just apply here with Moneysukh to open the trading and demat account to apply in the Imagine Marketing Limited IPO.

Also Read: How to Open Demat Account: Benefits and Documents Required

You just need government-verified documents to authenticate your identity and address to open the trading and demat account. Once your document verification and authentication process is completed, you can follow the steps given below to apply for IPO.

Steps to Apply for Imagine Marketing Limited IPO:

Step 1: When Imagine Marketing Limited IPO opens you can bid online.

Step 2: Now open trade.moneysukh.com and log in with your User ID & password.

Step 3: Here in the IPO section choose the Imagine Marketing Limited IPO.

Step 4: Now you need to fill in the various details like price, quantity, and so on.

Note: At the time of applying in any IPO, bid at the cutoff price before submitting your application. 

Step 5: Now make the payment and submit your IPO application successfully.

How to Check Imagine Marketing Limited IPO Allotment Status?

Once the IPO application procedure is completed, after a few days the allotment procedure starts. And when the allotment date is arrived you can check online the Imagine Marketing Limited IPO allotment status using your IPO application details or PAN.

Also Read: How to check IPO allotment status on NSE, BSE through Moneysukh

When the allotment process is organized, if anyone gets the allotment of shares, then the shares are allocated into the demat account of the account holder. However, if you have not been allotted any share, then your money will be refunded to your bank account. And if an IPO is oversubscribed, then there is less chance of getting the allotment of shares, especially in the retail category in that segment allotment is done on the lottery system.

Also Read: How to Increase the Chances of IPO Allotment

Here you can increase your chances of getting the allotment of shares if apply through the HNI category. Though you need a higher amount of minimum investment to apply through the HNI category but here your chances will be higher for getting the allotment. So, what are you waiting for open the trading and demat account now with Moneysukh and enjoy the unlimited trading facility in equity, commodity and currency markets at the lowest prices and broking fees.

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