KuberGrow Team Parent entity of consumer electronics brand boAt, Imagine Marketing, has made a fresh bid to go public by filing draft papers with the Securities and Exchange Board of India (Sebi) under the confidential pre-filing mode. The move is the second by the company to file for an initial public offering (IPO), after its previous filing in January 2022 for a ₹2,000-crore issue.
The confidential pre-filing path enables businesses to file draft red herring prospectuses (DRHP) without public disclosure at that moment. This allows them more flexibility when preparing for an IPO and eases the pressure, as businesses are not required to go ahead with the offering after filing. Imagine Marketing explained in a notice made public that filing via this path does not necessarily mean the company will undertake the IPO.
Imagine Marketing was founded by Aman Gupta and Sameer Mehta in 2013. Imagine Marketing has grown incredibly fast with its boAt brand, selling products as diverse as audio devices, smart wearables, grooming gadgets, and phone accessories. BoAt has now become a familiar name in the lifestyle electronics business in India.
The firm’s initial IPO proposal in 2022 comprised a new issue of ₹900 crore and an offer for sale (OFS) of ₹1,100 crore. The move to go in for a confidential filing this time is part of a larger trend amongst Indian corporates and startups looking for less stressful and more strategic IPO debuts.
In the past few years, others such as Tata Capital, PhysicsWallah, and Swiggy have followed the same secretive path, with varying results. While companies like Swiggy and Vishal Mega Mart went on to have successful IPOs, others such as OYO and Tata Play ultimately decided against it.
Experts opine that this method provides benefits like longer timelines—companies have 18 months from the last comments made by Sebi to come out with their IPOs—and being able to increase issue sizes up to 50% at the later stages. With investor interest in high-growth consumer goods brands continuing unabated, eyes are now focused on Imagine Marketing to know if the second attempt will be a success.
