Warburg Pincus-backed Imagine Marketing Pvt Ltd, which manufactures consumer electronics products under the brand boAt, has filed its draft red herring prospectus (DRHP) to raise Rs 2,000 crore through an initial public offering (IPO).
The issue will comprise of primary share issuance worth Rs 900 crore and an offer-for-sale from existing investors worth Rs 1,100 crore.
Warburg Pincus, which invested through one of its affiliates South lake Investment, will sell shares worth Rs 800 crore in the secondary offering.
According to the DRHP, it will use up to Rs 700 crore of the proceeds for pre-payment of borrowings and the remaining amount, if any, will be used for general corporate purposes.
Early last year, the company raised $100 million (Rs 735 crore) in its series B round of funding from private equity giant Walburg Pincus. VCCircle first reported about boAt's IPO plans in September last year.
The company has raised close to $116 million in funding till date.
Promoters Sameer Mehta and Aman Guota hold 28.26% stake each in the company. Warburg Pincus is the largest shareholder with 36.48% stake. Other financial investors include Fireside Ventures (3.76% stake) and Qualcomm Ventures (2.6% stake).
The firm’s consolidated operating revenues more than double from Rs 609.1 crore in FY20 to Rs 1,313.72 crore in FY21. Its losses during the same period nearly doubled from Rs 47.8 crore to Rs 86.5 crore in FY21.
Interestingly, for the six months ended September 2021, the company’s operating revenues have surpassed FY21 figures and stand close to Rs 1,550 crore with net profits surging to Rs 118 crore.
Axis Capital, BoFA Securities, Credit Suisse, and ICICI Securities are the joint bookrunners for the IPO.
Shardul Amarchand Mangaldas & Co. is the legal counsel to the company, IndusLaw and Sidley Austin LLP are the legal counsels to the BRLMs, and Cyril Amarchand Mangaldas will be the legal advisor to the selling shareholders.