Wearables brand Boat files draft IPO papers with SEBI
What's the story
Imagine Marketing, the parent firm of wearables brand Boat, has filed draft documents with the Securities and Exchange Board of India (SEBI), for an initial public offering (IPO) via the confidential pre-filing route.
This way, the company can keep certain details under the draft red herring prospectus (DRHP) undisclosed until later stages.
The move comes as part of a growing trend among Indian companies going for this discreet filing process.
Past efforts
Previous IPO attempt and product range
Notably, this isn't Imagine Marketing's first attempt at going public. Back in January 2022, it had filed draft papers for a ₹2,000 crore IPO.
The offering was to include a fresh issue of equity shares worth ₹900 crore and an offer for sale (OFS) aggregating up to ₹1,100 crore.
Founded in 2013 by Aman Gupta and Sameer Mehta, the company sells audio gear, smart wearables, mobile accessories, etc.
Market trend
Tata Capital, PhysicsWallah followed confidential pre-filing trend
The confidential pre-filing route has been gaining popularity among Indian firms. Recently, Tata Capital and edtech unicorn PhysicsWallah also opted for this route. Last year, food delivery giant Swiggy and supermart major Vishal Mega Mart floated their IPOs successfully after making confidential filings.
Flexibility
Advantages of confidential pre-filing route
Market experts suggest the confidential pre-filing route offers flexibility and relieves companies of the pressure to go public.
Unlike the traditional route where IPOs have to be launched within 12 months of SEBI's approval, this route allows companies to float an IPO within 18 months from SEBI's final comments.
The approach also gives flexibility to tweak the primary issue size by up to 50%, until updated draft red herring prospectus (UDRHP) stage.