New Delhi: Delhi NCR-based boAt Lifestyle, one of the world’s largest wearable brands, is reportedly planning an initial public offering (IPO). With its initial offer, the brand expects to collect between Rs 3000 and Rs 3500 crore.
According to an Economic Times report, the IPO could value the consumer electronics brand at around $1.5 billion, and the company’s management has begun discussions with investment bankers.
The mandate for the IPO is expected to be signed within the next few weeks. The specifics of the primary and secondary shares that will be sold as part of the IPO have yet to be released.
Warburg Pincus, Qualcomm Ventures, and Fireside Ventures are among the current investors in boAt. Warburg Pincus is the largest investor in boAt, with a 30% stake, followed by Qualcomm Ventures and Fireside Ventures. The last two investors have less than a 5% stake in boAt.
boAt, founded in 2016 by Aman Gupta and Sameer Mehta, has grown to become the world’s fifth-largest wearable brand. The company sells a variety of low-cost consumer electronics items such as earphones, Bluetooth headphones, speakers, and smartwatches, among other things.
For the fiscal year 2019-20, boAt reported a 196 percent increase in revenue to Rs 701 Cr, while profit increased by 470 percent to Rs 49 Cr. At the moment, boAt manufactures its products in India and China. However, the company claims to be concentrating on localizing its supply chain.