Homegrown tech firm boAt's parent firm files for IPO papers

New Delhi, April 7 (IANS) Homegrown wearables brand boAt’s parent company, Imagine Marketing, on Monday announced it has filed draft papers for an initial public offering (IPO) with market regulator Securities and Exchange Board of India (SEBI) through the confidential pre-filing route.

This is Aman Gupta-run company’s second attempt at going public, after first filing a full draft red herring prospectus (DRHP) in 2022.

The confidential filing route allows companies to submit their plans without publicly revealing all the details at the early stage.

The DRHP becomes available to the public only at a later phase. According to a public notice, the company has submitted its pre-filed DRHP under SEBI's Issue of Capital and Disclosure Requirements Regulations.

The proposed IPO would see Imagine Marketing list its equity shares on the mainboard of the Indian stock exchanges.

Earlier, in January 2022, the company had filed for a Rs 2,000 crore IPO. That plan included a fresh issue of Rs 900 crore and an offer-for-sale (OFS) worth Rs 1,100 crore.

However, the company later shelved the plan and has now chosen the confidential route instead. It also made it clear that submitting the DRHP doesn’t mean the IPO will definitely happen.

Imagine Marketing, founded in 2013 by Gupta and Sameer Mehta, owns popular consumer tech brand boAt.

The company offers a wide range of products, including audio gear, smart wearables, personal grooming items, and mobile accessories.

More Indian companies are now using the confidential filing route for IPOs. Recently, Tata Capital and edtech firm PhysicsWallah also followed this method.

In 2024, both Swiggy and Vishal Mega Mart went public successfully after initially filing confidentially. Other companies like Oyo and Tata Play also used the confidential route, though they later chose not to go ahead with their IPOs.

Market experts say this filing method gives companies more time and flexibility. Unlike the traditional IPO process, where companies must go public within 12 months of SEBI’s approval, the confidential route gives them up to 18 months.

It also allows changes in the size of the IPO -- up to 50 per cent -- before releasing the final document.

--IANS

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