The most renowned consumer electronic brand in India, boAt, owned by Imagine Marketing Ltd., has planned to raise $60 million (Rs. 500 crores) from private investors. The company has made the decision amidst the volatile stock market. The company’s announcement about the filing of an IPO with SEBI provides an opportunity to retail investors to buy boAt unlisted shares to enjoy high returns on their investment in the future. But now, the company made some changes to its IPO due to fundraising. If you’re looking forward to investing in boAt pre-IPO stocks, you must read this blog till the end. Here we will walk you through every important aspect of boAt’s unlisted shares, IPO, and its fundraising plans. Let’s start.
A Journey Towards IPO
boAt, the most favourite consumer electronic brand in India, filed a Draft Red Herring Prospectus with the Securities And Exchange Board Of India (SEBI) on 26 January 2022 for an IPO to raise Rs. 2000 crore. With this IPO, the company planned to expand its operations in the market by reaching a valuation of $1.5 to $2 billion. However, the company suspended this IPO for other reasons, and they claimed to opt for the listing in the future. This news gave a little shock to retail investors who wanted to make an early investment in boAt unlisted shares before it went public. Now that the IPO has been suspended, people are curious to know the reason behind it. Our next section will talk about it, keep reading.
$60 Million Funding Raised From Warburg And Malabar Investors
After withdrawing its IPO, boAt managed to raise $60 million in funding from its new and existing investors. So, the company raised Rs. 500 crores in funds via convertible preferred stock notes from its existing investors Warburg Pincus and new investors, Malabar Investments. boAt made this decision after the growing concern among companies over the volatile stock market. So, this news came at a time when boAt was all set to launch its IPO. As per the guidelines, the six-year-old company was allowed to raise Rs. 180 Cr. before the IPO, but boAt chose to go with Rs. 500 Cr. funding. According to the CNBC report, this made the company change its IPO plan and reconsider it in the next 12-18 months.
How Will The Company Use This Fund?
As per the latest Series C funding, the company was valued at approximately $1.4 billion, with Warburg South Lake Investment and Malabar. This latest funding from the company will be used to expand its smartwatch category, scale up business across India and the world, and also hire tech talent. As per the sources, the company also plans to support local manufacturers’ ecosystems under the Make In India initiative.
“We now want to make smartwatches our second core and will replicate the boAt digital playbook to become global leaders in this category as well. The new funding will allow us to invest significantly to disrupt the smartwatch space with more innovative products. And we are thrilled that investors continue to have strong conviction and confidence in the boAt story,” said Aman Gupta, co-founder & chief marketing officer.
Undoubtedly, the company made a prominent place in the smartphone category when it entered the market a few years ago. So, to expand into this fast-growing landscape, the company raised funds.
boAt Unlisted Share Performance
The unlisted share market is dynamic in nature, which significantly affects the price of pre-IPO stocks. However, there are various factors that contribute to price changes in unlisted shares, including the company’s performance, earning potential, market demand, EBITDA, price per ratio, PAT, industry trends, etc. And this impact can be seen with boAt unlisted shares as well before and after the company suspended its IPO. On September 20, 2022, the unlisted share price of the company was Rs. 750, which went to Rs. 870 in December of the same year. From January 2023 to May 2023, the boAt unlisted share price fluctuated between Rs. 820 and Rs. 900. Due to fluctuation, the price witnessed a dip and went down to Rs. 786 in June- July 2023. On August 1, 2023, the price surged to Rs. 975, and currently, boAt unlisted shares are trading at Rs. 930.
Should You Invest In boAt Unlisted Shares?
Without any doubt, boAt is India’s largest consumer electronic brand, which is on a boat to expand its market worldwide. Since its launch in 2016 by Aman Gupta and Sameer Mehta, the company has made a robust presence in the audio and smart gadgets industry. The company got major hype when Aman Gupta, Co-Founder, appeared in Shark Tank India in December 2021. Every retail investor now wants to be a part of the success journey of boAt by investing in its shares. Make your trading experience seamless with an experienced stock broker at Stockify, India’s online stock broking platform.