Highlights
boAt Reduces IPO Size in Updated DRHP Filing with SEBI
boAt, a leading consumer electronics brand, has submitted a revised draft red herring prospectus (DRHP) to SEBI, scaling back its IPO size from Rs 2,000 crore to Rs 1,500 crore. This new IPO size comprises a fresh equity issue valued at Rs 500 crore, while existing shareholders and co-founders are set to offload shares amounting to Rs 1,000 crore through an offer for sale (OFS).
Details of the Offer for Sale (OFS)
According to the updated DRHP, the OFS will feature contributions from South Lake Investment (Warburg Pincus), offloading shares worth Rs 500 crore, representing half of the total OFS. Additionally, other investors such as Fireside Ventures and Qualcomm Ventures will sell shares valued at Rs 150 crore and Rs 50 crore, respectively. The co-founders are also partaking in the OFS, with Sameer Mehta set to sell shares worth Rs 75 crore, while Aman Gupta, co-founder and CMO, anticipates generating Rs 225 crore from the IPO.
Use of Funds from the Fresh Issue
Out of the total proceeds from the fresh issue, Rs 225 crore is earmarked for working capital requirements, and Rs 150 crore is designated for branding and marketing efforts. The remaining funds will be allocated for various corporate purposes.
As of the date of the UDRHP filing, South Lake Investment Ltd (Warburg Pincus) holds the largest equity stake in boAt at 39.35%. Co-founders Sameer Mehta and Aman Gupta own stakes of 24.75% and 24.76%, respectively. Other notable investors in the company include Fireside Ventures (3.28%), Qualcomm Ventures (2.28%), and Malabar Select Fund (1.20%).
About boAt and its Business Model
Founded by Aman Gupta and Sameer Mehta, boAt operates on a direct-to-consumer (D2C) model, focusing on providing stylish, high-quality, and affordable audio products, wearables, and accessories. The brand successfully drives sales through major online platforms like Amazon and Flipkart, in addition to its own website, while maintaining a robust offline presence across various retail stores.
Financial Performance
In the fiscal year concluding in March 2025, boAt reported a substantial operating revenue of Rs 3,073 crore and a net profit of Rs 61 crore, recovering from a loss of Rs 79.6 crore in FY24. For the first quarter of FY26, the company announced an operating revenue of Rs 628 crore and a net profit of Rs 21.35 crore.