Invest in boAt Share Price with Planify

boAt Upcoming Initial Public Offering (IPO): 

Imagine Marketing Limited, often known as boAt, is an unlisted public company, founded on 1st November 2013, with its HQ in Mumbai. It is the parent company of boAt. They filed a Draft Red Herring Prospectus with SEBI on 26th Jan 2022 for Rs. 2000 Cr. This Initial Public Offering includes Rs. 900 Cr. fresh issue of equity share and a Rs. 1100 Cr. offer for sale as described in DRHP. In addition, the business intends to collect Rs. 180 Cr. through a Pre-IPO placement. The business is awaiting SEBI permission before launching its IPO before launch in the market.

boAt Share Price:

At present, the company’s shares are being traded in unlisted market shares named as boAt Unlisted Shares. boAT Unlisted shares are available on Planify at Rs. 860 per share. Investors can gain the first mover advantage by purchasing these shares and gain exponential returns in future.

Objectives behind the boAt IPO:

1. Increase your visibility by participating in a variety of lifestyle categories

2. To continue investing and propel the brand forward

3. Expand marketing ability to reach a large consumer base

4. Develop strong design, R&D & technical capabilities

Products offered by boAt:

Imagine Marketing Limited manufactures and sells consumer electronic products in India & internationally. The company offers a wide range of products from headphones and earphones (neckbands), true wireless stereos, bluetooth speakers, home theater along with gaming accessories like wireless mouse, bluetooth speakers. The company also offers personal appliances like trimmers & grooming kits. Imagine Marketing sells its products under these 5 brand names:

boAt Merger and Acquisition:

On 10th January 2022, the subsidiary of the company Imagine Marketing Singapore entered into a share purchase agreement with Kaha entities to acquire 100% stake in their entity. The company has built IoT devices before and offers a wearable focused platform with proprietary AI and machine learning capabilities and end to end smart wearable solutions.

boAt Industry Overview:

Hearables and Wearables Industry: The term ‘Hearable’ is a mix between Headphone and Wearable as hearables integrate key features for wearable technologies with the fundamental of audio based information services, wireless connectivity. The Indian hearable market expanded at a Compound Annual Growth Rate of nearly 31% from around USD 1.3 Bn in FY18 to USD 2.3 Bn in FY20. Activity bands and Smartwatches make up a sizable component of the wearables market. It has expanded at a CAGR of nearly 39% from USD 0.2 Bn in FY18 to USD 0.4 Bn in FY20. Smartwatches form nearly 76% of Wearables market in India although its still comparatively less  when compared to other advanced countries like USA (95% share), MEA region (81%). As smartphones have shifted to USB type C connections, wired headphones have been found incompatible with modern devices and hence have seen a consistent decline from 92% in FY18 to 45% in FY20 and is expected to decline further to 15% by FY25.

This decline in wired headphones have aided the rise of wireless devices whose share have risen from 4% in FY18 to 26% in FY20. By FY25, truly wireless is expected to rise up to 45-50% market share, increasing at a CAGR of 40-55%.

Growth Drivers: 

Technological Improvements: Wireless and truly wireless earphones are being made on a wider scale with more cheap branded and unbranded product lines that may cater to the demand of a larger portion of the population in India.

Multiple Use Cases: Hearing aids have a variety of applications, leading to users owning many pairs of headphones/earphones for different purposes. This is especially true for Gen-Z and millennials, who are advanced users, who own a variety of devices for gaming, travel, calling & other activities.

 

Unbundling of Smartphones and Earphones: Most national and international smartphone vendors have discontinued including wired earbuds as a part of their offerings. This has resulted in consumers buying hearables separately which has opened a big opportunity for players in the hearables market to innovate further and offer a wide range of wired, wireless and truly wireless earphones and headphones.