BoAt IPO

About boAt IPO

Back in 2013, despite his family’s apprehension, Aman Gupta forged a partnership with Sameer Mehta to launch the boAt brand. And Gupta’s gambit paid off, with boAt becoming one of the most popular homegrown audio brands in India.   

Since its inception, Imagine Marketing – which owns and operates the boAt brand – has witnessed a meteoric rise. In fact, as of September 2021, boAt held a market share of 48% and 23% in India’s branded wireless hearables and smartwatch segments respectively. This makes it the number one wireless hearables brand and number two smartwatch brand in India, in terms of volumes. 

Now, this fast-growing digital-first consumer products company is all set to tap the equity markets through the IPO route. The boAt IPO will be a combination of an offer for sale as well as a fresh issue. The money raised from the fresh issue of the boAt Ltd IPO will be used for repayment of debt and general corporate purposes. 

Here are key boAt IPO details: 

Financial snapshot 

A quick look at boAt IPO’s strengths, risks and threats

Strengths  

1. Besides the flagship boAt brand, the company owns brands such as RedGear, TAGG, Misfit and DEFY
2. Offers products at affordable price points with a clear value proposition and maintains high quality
3. Is backed by marquee investors such as Warburg Pincus, Qualcomm and Fireside Ventures
4. Its revenue and profit have grown at a CAGR of 141% and 228% between FY19 and FY21, respectively
5. Launched 77 and 45 new products in FY21 and the first six months of FY22, respectively
6. Scaled up the business by selling products predominantly through online marketplaces. Its digital-first approach enables it to cater to over 90% pin codes in India
7. In the first six months of FY22, around 83% of the sales came from online marketplaces
8. The hearables market is expected to grow between 25%-35% on a CAGR basis and reach ₹76,500 crore by 2025

Risks and threats

1. Dependence on the audio segment for revenue. Around 83% of the revenue came from the audio category in 6MFY22
2. Faces competition from domestic and international players 
3. Relies on third-party contract manufacturers and component suppliers for production 
4. Substantially all of its contract manufacturing is from manufacturers located in China
5. Pricing pressure from customers, online marketplaces or distributors may affect its profitability
6. Has experienced negative cash flow in the recent past including in the first six months of FY22

boAt IPO details

The company has filed its Draft Red Herring Prospectus with the market regulator SEBI. The boAt IPO’s opening date – in other words, the boAt IPO launch date – hasn’t been announced yet. The boAt IPO closing date also hasn’t been declared. Along with these dates, investors will be updated about the boAt shares allotment date. 

Investors, who receive allotment, can expect them to be credited in their demat account after the allotment date. Besides this, the boAt IPO listing date hasn’t been announced yet. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE. Stay tuned with Uptox for all the key updates about the boAt IPO.

The boAt IPO is a book-built issue. The boAt IPO price band hasn’t been set yet. The price band is a price range within which investors can apply for the IPO. When the boAt IPO opens, interested investors will have to choose a price within the band to apply for the public issue. 

Also, the boAt IPO listing price will be determined on the listing date. The listing price is the price at which the shares of a company make their debut on the stock exchanges. 

| boAt IPO lot size

The boAt IPO details haven’t been declared. Hence, the boAt IPO lot size also hasn’t been announced yet. It’s important to note that an investor can apply for a minimum of 1 lot. Meanwhile, according to the news reports, the boAt IPO issue size could be around ₹2,000 crore. 

How to apply for the boAt IPO?

If you are interested in this investment opportunity but unsure how to apply for the boAt IPO, here we are listing out the steps for you. 

When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the boAt IPO on Upstox: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘boAt IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Apply’
7. Accept the mandate on your UPI app

How to check the boAt IPO allotment status?

When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes. 

Here’s a step-by-step guide on how to check the boAt IPO allotment status:

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover page, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, you will find the ‘View all’ option
5. Once you click on ‘View all’, you will be directed to the ‘IPO’ tab
6. In the ‘IPO’ tab, click on ‘My applications’ 
7. In ‘My applications’, under the History section, your boAt IPO allotment status will be mentioned

Open a demat account with Upstox to apply for the boAt IPO

To apply for the boAt IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.

Here is a step-by-step guide on how to open a demat account with Upstox:

1. Click here to visit the demat account opening page on the Upstox website. 
2. Enter your phone number and other essential details to begin opening a demat account.
3. Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed. 
4. Complete the e-verification using the OTP sent to your registered mobile number. 

This is all it takes to open a demat account with Upstox. Easy and quick, right? 

Upstox – trading app to apply for the boAt IPO

Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India. 

You can apply for the boAt IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero. 

In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.