Audio brand Boat plans ₹2,000cr IPO via confidential filing route
What's the story
Indian consumer electronics brand, Boat, is preparing for its second shot at an initial public offering (IPO) in the fiscal year 2025-26. The company hopes to raise ₹2,000 crore from the move.
According to CNBC-TV18, Boat will soon file a confidential draft red herring prospectus (DRHP), following Swiggy's playbook for its own IPO.
Strategy details
Confidential filing route: A strategic move
The confidential filing route was introduced by the Securities and Exchange Board of India (SEBI) in November 2022.
This way, companies can file their IPO documents privately, offering several advantages like protecting sensitive business information from competitors, greater flexibility in timing the IPO, and shielding companies from premature public scrutiny and potential legal challenges.
By adopting this strategy, Boat can assess market conditions and finalize its offering without immediate exposure to investors and analysts.
Company overview
Boat's market position and financial performance
Founded in 2013, Boat has become a major player in India's wearables market with a 26.7% market share in Q2 2024.
However, the company has struggled in recent quarters. In FY24, Boat's revenue fell 5% to ₹3,285 crore while losses were halved to ₹70.8 crore.
The company's audio segment remained flat in the fiscal year's second half but received a sales boost during the Diwali season after several muted quarters.
Past endeavors
Boat's previous IPO attempt and funding history
This isn't Boat's first IPO attempt. The company had first filed for a ₹2,000 crore public issue in 2022 but withdrew later due to unfavorable market conditions.
It instead raised $60 million in private funding from Warburg Pincus. Other key investors in the company include Qualcomm Ventures, Innoven Capital, and Fireside Ventures.
By opting for the confidential filing route for its upcoming IPO, Boat hopes to keep its plans flexible and strategically time the listing to secure an optimal valuation while effectively navigating market uncertainties.