The Securities and Exchange Board of India (SEBI) has given the green light to the initial public offering (IPO) of Imagine Marketing, the parent company of the popular Indian electronics brand boAt. This marks a significant step for the company, paving the way for it to access capital markets and pursue its growth ambitions.
Imagine Marketing, founded in 2013, has become a major player in the Indian audio and wearables market with its boAt brand. The company offers a wide range of lifestyle-focused consumer products, including earphones, headphones, portable speakers, smartwatches, and other accessories. Targeting young, digitally savvy, and trend-conscious Indian consumers, boAt has established a strong brand presence and value proposition.
The IPO will consist of a fresh issue of shares worth ₹900 crore and an offer for sale (OFS) of ₹1,100 crore. As part of the OFS, boAt's co-founders, Aman Gupta and Sameer Mehta, will sell shares worth ₹150 crore, while South Lake Investment Ltd. will sell shares worth ₹800 crore. While the specific details of the IPO, such as the price band, lot size, and opening and closing dates, are yet to be announced, the company is reportedly targeting a valuation of $1.5 billion.
Imagine Marketing has demonstrated strong financial performance in recent years. The company's revenue grew at a CAGR of 141.18% between 2019 and 2021 and remained profitable during that period. However, more recent data indicates a slight dip, with consolidated revenue for FY25 at ₹3,073 crores, a 1.4% year-on-year decrease, attributed to muted consumer demand and intense competition in the wearables and hearables sector. Despite this, the company has maintained a strong market share in India's audio and wearables segment, with over 40% in True Wireless Stereo (TWS) and over 30% in wearables. For FY24, Imagine Marketing Limited generated a revenue of ₹3,140Cr. In FY 2025, the company reported a profit before tax of ₹747.02 million, a turnaround from the loss of ₹962.53 million in FY 2024.
Imagine Marketing has focused on strengthening its product innovation and supply chain capabilities. Over 80% of its products are now manufactured locally under the 'Make in India' initiative. The company has also expanded its retail presence through 20,000+ touchpoints and has a robust presence on e-commerce platforms. It is diversifying its product portfolio into smartwatches and gaming accessories.
The company aims for more flexibility in the timing of the IPO. The IPO is also expected to provide an exit opportunity for some of its existing investors. The company plans to use the net proceeds from the fresh issue of shares for repayment/prepayment of debt, funding working capital requirements, and general corporate purposes.
The approval of Imagine Marketing's IPO by SEBI reflects the regulator's confidence in the company's business model and growth potential. The IPO is expected to attract strong interest from both domestic and international investors.
