boAt IPO: World’s fifth-largest wearable brand plans Rs 3,500 crore offer

The IPO could value at boAt Lifestyle about $1.5 billion.

New Delhi: Delhi NCR-based boAt Lifestyle, which is one of the largest wearable brands in the world, is reportedly planning to float its initial public offering (IPO). With its initial offer, the brand is planning to mop up about Rs 3000 to Rs 3500 crore. 

The IPO could value the consumer electronics brand at about $1.5 billion, according to a report by Economic Times, which also pointed out that the management of the company has initiated discussions with investment bankers.  

The mandate for the IPO is likely to be signed in a couple of weeks. The exact details of the primary and secondary shares, that will be sold as part of the IPO, aren’t out yet. 

boAt is currently backed by a slew of investors, including Warburg Pincus, Qualcomm Ventures and Fireside Ventures. With a 30% stake, Warburg Pincus is the largest investor in boAt, followed by Qualcomm Ventures and Fireside Ventures. The latter two investors own less than a 5% stake in boAt. 

Founded in 2016 by Aman Gupta and Sameer Mehta, boAt has become the fifth-largest wearable brand globally. The brand sells a slew of affordable consumer electronics products such as earphones, BlueTooth headphones, speakers, and smartwatches, among other accessories. Also Read: Job loss and despair – What awaits fate of nearly 45,000 employees working for Ford, dealerships?

For the financial year 2019-20, boAt reported a 196% increase in its revenue to Rs 701 Cr while the company’s profit soared 470% to Rs 49 Cr. boAt currently manufactures its products in India and China. However, the company says that it’s focussing on localising its supply chain. Also Read: Good news for taxpayers! ITR filing deadline for FY21 extended to December 31