The “boAt IPO size” has now been officially revised downward — boAt’s parent company, Imagine Marketing Ltd, has filed an updated draft red herring prospectus (UDRHP) with the Securities and Exchange Board of India (SEBI) reflecting a reduced issue size of ₹1,500 crore, down from the earlier ₹2,000 crore target.
What changed?
- Originally, boAt had intended to raise around ₹2,000 crore via its IPO.
- The new filing shows the issue split as: fresh issue of ₹500 crore (down from an earlier estimate of ₹900 crore) and an offer‐for‐sale (OFS) of around ₹1,000 crore.
- The reduction likely reflects current market conditions, investor sentiment and strategic recalibration by boAt.
Why the reduction?
Several factors likely contributed to this decision:
- Market conditions remain volatile for IPOs, especially for consumer electronics / wearables companies. boAt’s earlier withdrawal in 2022 is an example.
- By reducing the size, boAt may aim to mitigate risk, ensure better pricing and improve listing success probability.
- The company has also reported improved financials: it returned to profit in FY25, showing a net profit of over ₹60 crore. Outlook Business
- A smaller size may also make the IPO more attractive to retail investors, helping subscription levels and listing gains.
Implications for investors
- A reduced IPO size could enhance listing prospects if the demand is strong relative to supply — which often benefits early retail investors.
- However, investors should look beyond the size: registry pricing, business fundamentals, competition in wearables/audio and boAt’s growth prospects matter.
- The fresh issue portion being smaller may mean lesser new capital for expansion, but less dilution of existing shareholders.
- With the OFS component being ~₹1,000 crore, existing shareholders will be exiting/partially redeeming, which could be interpreted in different ways (profit‐taking vs strategic exit).
- The company’s return to profitability is a positive sign, but investors should check the sustainability of margin, market share, and product pipeline.
Outlook & listing considerations
- If boAt’s IPO receives strong demand, the reduced size may help in ensuring a strong listing performance.
- Timing will matter: external macro conditions (interest rates, global cues, IPO market appetite) will influence listing success.
- The company’s valuation in the listing will be key; the smaller issue size may support a favorable valuation, assuming business metrics justify it.
- Post‐listing, investors should monitor boAt’s use of proceeds (how the fresh funds are deployed), competitive landscape (especially in wearables/audio) and retention of brand/market leadership.
In conclusion
The key term “boAt IPO size” has shifted — from the initial target of ₹2,000 crore to a trimmed ₹1,500 crore. This adjustment reflects both market realities and strategic recalibration by the company. For investors, it presents a potentially more manageable entry opportunity, but the fundamentals must still be carefully assessed. A successful listing could set the tone for boAt’s next growth phase.
