Imagine Marketing, parent company of consumer electronics brand boAt, has filed a Draft Red Herring Prospectus (DRHP) through SEBI’s confidential pre-filing route, aiming for a ₹2,000 crore IPO. This marks the company’s second attempt to go public after shelving plans in 2022 due to market volatility.

• Key Details of the IPO
• Structure:
• Fresh Issue: ₹900 crore to fund debt repayment, R&D, and expansion.
• Offer for Sale (OFS): Up to ₹1,100 crore by existing investors, including Warburg Pincus, Qualcomm, and

• Fireside Ventures.
• Valuation: Targeting over $1.5 billion (₹12,500+ crore), subject to market conditions.
• Lead Managers: ICICI Securities, Goldman Sachs, and Nomura.

Why Confidential Pre-Filing?

• Introduced by SEBI in 2022, this route allows companies to:
• Shield sensitive data from competitors and public scrutiny until final stages.
• Adjust issue size by 50% before filing the Updated DRHP (UDRHP).
• Extend timeline: Launch IPO within 18 months of SEBI’s final comments vs. 12 months under traditional filing.

Past Attempts and Financial Performance
2022 IPO: Shelved ₹2,000 crore plan amid market headwinds; later raised $60 million privately in 2023.

• FY24 Results:
• Revenue: Declined 5% to ₹3,122–3,285 crore (sources vary).
• Losses: Halved to ₹53.5–70.8 crore (reports differ).
• Market Share: 26.7% in India’s wearables segment (Q2 2024).

• Strategic Rationale
• D2C Growth: boAt dominates online sales via Amazon/Flipkart while expanding offline.
• Product Portfolio: Audio devices, smart wearables, grooming products, and accessories.
• Investor Confidence: Backed by $170+ million total funding, including Warburg Pincus’s $60 million.

• Industry Context
• Wearables Market: Faced 20.7% YoY shipment decline in Q3 2024 due to cautious inventory.
• Recent Pre-Filings: Tata Capital, PhysicsWallah, Swiggy, and Vishal Mega Mart opted for confidential routes.

Key Highlights:

• IPO Size: ₹2,000 crore (₹900 crore fresh + ₹1,100 crore OFS).
• Confidential Route: Avoids public disclosure until later stages, offers flexibility.
• Use of Proceeds: Debt repayment, R&D, and expansion.
• Market Position: India’s top wearables brand with 26.7% market share.