As of September 30, 2021, the firm has built dominant market positions in volume and value terms in India across various high-growth consumer categories such as audio and smartwatch, headed by its flagship brand “boAt,” introduced in 2014. (Image courtesy of RedSeer Report.) The firm intends to disrupt the current industry environment by identifying fast-growing, lifestyle-oriented product categories with solid customer engagement and enormous market prospects. The company intends to accomplish this by launching distinctive and aspirational products with a clear value proposition at affordable prices, specifically tailored for the Indian audience and marketed to India’s rapidly growing online audience of young, digitally-enabled, and trend-conscious consumers. boAt IPO Share Price will be about Rs 900 crore, with a Rs 1,100 crore offer for sale (OFS) in the IPO, spearheaded by the company’s present promoters and shareholders. Each founder will sell shares for up to Rs 150 crore.
Objectives of the boAt IPO
The following are some of the goals that boAt hopes to achieve with the revenues of this IPO:
- Increase your visibility by participating in a variety of lifestyle categories.
- To continue investing and propel the brand forward.
- Expand marketing ability to reach a more extensive consumer base.
- Develop robust design, R&D, and technical capabilities.
Strength
- Digital brand with market-leading positions:
Imagine Marketing Limited’s focus on delivering high-quality, aspirational, lifestyle-focused products targeted at India’s rapidly emerging online audience of young, digitally enabled, and trend-conscious consumers have led to its flagship brand “boAt”. It is becoming synonymous with India’s wearables and wearables markets in terms of revenue from operations for the fiscal year 2021.
- Consumer brand with strong market positioning and clear value proposition:
Imagine Marketing Limited has constantly committed substantial resources to strengthen the strength and attractiveness of its leading brand “boAt” since its introduction in 2014. The company has accomplished this by increasing brand awareness, improving the appeal of products sold under the brand, offering products at affordable price points with a clear value proposition, maintaining the high quality of products sold under the brand, and increasing consumer engagement after-sales. To separate its products from those of its rivals, it has used a lifestyle approach to brand positioning and, as a result, created items with trendy designs, brilliant colors, and practical features that are relevant to the Indian consumer across numerous product categories.
Weakness
- A variety of third-party vendors manufacture the company’s goods.
- The firm relies on ties with specific online marketplaces and physical distributors.
- Customers, online marketplaces, and distributors may exert pricing pressure on its gross margins.
Opportunities
- Entering new regions and foreign markets may help the firm develop tremendously.
- Customers are increasingly spending money on smart wearables.
Threats
- The firm is up against a slew of unknown companies in the marketplace.
- Dependent on a single brand.
Challenges for the Business
There are various threats to the company’s operations.
The firm competes in a highly competitive market with price-conscious customers. Customers may lack brand loyalty, allowing new companies offering comparable or lower pricing to eat into Imagine’s market share. Furthermore, the company’s substantial reliance on marketplaces for product sales (more than 80% of revenues) might indicate difficulties. The top two of these marketplaces account for more than 70% of overall income.
The algorithms and the company’s ability to arrange promotions with online marketplaces significantly influence the items’ visibility. Any troubles the firm has with these markets will harm the organization. If the firm is withdrawn from these platforms, it will suffer a significant revenue loss.
Furthermore, a significant portion of the company’s products is imported from other countries, with a recent move to India and Vietnam. As a result, supply chain concerns, changes in import duties, and foreign currency issues continue to be a risk for the organization.
Finally, values are essential in determining future profits. According to rumors, the firm might be valued at $1.5-2 billion. On the other hand, Imagine Marketing valued at Rs 2,200 crore a year ago. The firm might see a 5-7 times increase in valuations at current prices since it is expected to treble its revenues this year. As a result, investors must assess if such growth is sustainable and whether it offers actual value.
You can apply for the boAt IPO via a stock market app available in the market. You can try the Kotak Stock trading app and avail the benefits of the IPO. Bidding on IPO shares can be done using bank accounts or trading accounts. In addition, a Demat account is required. Otherwise, you will be unable to sell the shares at any moment.
