Boat-Imagine Marketing IPO Details Issue Price, Date, News, Allotment Status, GMP, Link, Updates

By Elite Wealth
/ December 15, 2022
/ IPO-Recommendation, whatsnew

Boat-Imagine Marketing IPO Company Profile:

Imagine Marketing Limited is a digital-first consumer products company and one of India’s largest digital-first brands in terms of revenue from operations for the financial year 2021. The company has an attractive offering of high-quality, wide-ranging, and aspirational lifestyle-focused consumer products at accessible price points, under its brands. The company was founded in 2013 and is led by the flagship brand “boAt” launched in 2014, since then it has established leading market positions in value and volume terms in India across multiple, high-growth consumer categories such as smartwatch and audio as of September 30, 2021. “boAt” was ranked #1 in India among the wireless hearables brands in volume terms with a market share of 48%, by volume, and 30% by value, and has maintained the #1 position in this category by volume since 2019, with a consistent increase in market share annually.

Boat-Imagine Marketing IPO Product Portfolio:

Imagine Marketing Limited’s portfolio includes products under its flagship “boAt” brand, as well as under other brands such as “RedGear”, its value-oriented gaming accessories brand, “TAGG”, its premium audio and wearables brand, “DEFY”, its value-oriented audio brand, and “Misfit”, its personal care and grooming sub-brand.

Audio: Imagine Marketing Limited launched its “boAt” brand in 2014 with a foray into the audio market in India which it identified as a category with significant growth potential. The company had considered the potential to disrupt the then-incumbent industry landscape by launching distinctive and aspirational products having a clear value proposition at accessible price points, and specifically tailored for the Indian audience. The products in the audio category are available under the company’s flagship brand “boAt”, as well as under brands “RedGear”, “TAGG” and “DEFY”, with a range of products such as home theatre systems, sound bars, wired earphones and headphones, wireless headphones and earphones and true wireless stereo.

Wearables: Imagine Marketing Limited has identified wearables as a category with large market potential and similar growth dynamics to the audio category, with the segment having massive room for growth in the future. Launched in October 2020, the products in wearables (only smartwatches currently) are available under the flagship brand “boAt” and the recently acquired brand, “TAGG”. Wearables are one of the primary product categories where the company has established a market-leading position and in the second quarter of the financial year 2022, the “boAt” brand was ranked #2 in India among smartwatch brands and the 10^th largest among smartwatch brands globally in terms of volume.

Other Categories (Gaming Accessories, Personal Care Appliances, Others): Imagine Marketing Limited’s products in this category are offered through its flagship “boAt” brand and “RedGear”, its value-oriented gaming accessories brand. For the six-month period that ended September 30, 2021, RedGear was one of the leading brands in the gaming headsets and controllers (keyboard, mouse, mouse pad, and joystick) market based on sales volume on leading e-commerce marketplaces. The company has since diversified the sales channels of RedGear by expanding into other online marketplaces and offline channels.

Segment	6M FY-22(in cr.)	%	FY-21(in cr.)	%	FY-20(in cr.)	%	FY-19(in cr.)	%	CAGR (FY-19 to FY-21)
Audio	1286.80	83.13%	1228.57	93.52%	594.71	97.64%	216.83	96.01%	78.3%
Wearables	217.52	14.05%	54.81	4.17%	0.00	0.00%	0.00	0.00%
Others	43.55	2.81%	30.34	2.31%	14.40	2.36%	9.02	3.99%	49.8%
Total	1547.87	100.00%	1313.72	100.00%	609.11	100.00%	225.85	100.00%	79.8%

Boat-Imagine Marketing IPO Details:

IPO Open Date	Not Available
IPO Close Date	Not Available
Listing Date	Not Available
Face Value	₹1 per share
Price	Not Available
Lot Size	Not Available
Issue Size	[●]shares (aggregating up to ₹2,000Cr.)
Fresh Issue	[●]shares (aggregating up to ₹900Cr.)
Pre-IPO Placement	[●]shares (aggregating up to ₹180Cr)
Offer for Sale	[●]shares (aggregating up to ₹1,100Cr)
Issue Type	Book Built Issue IPO
Listing At	BSE, NSE
QIB Shares Offered	Not more than 50% of the Offer
NII (HNI) Shares Offered	Not less than 15% of the Offer
Retail Shares Offered	Not less than 35% of the Offer
Promoters	Sameer Mehta and Aman Gupta

Boat-Imagine Marketing IPO Financial Analysis:

Particulars	6M FY-22(in cr.)	FY-21(in cr.)	FY-20(in cr.)	FY-19(in cr.)	CAGR (FY-19 to FY-21)
Revenue from Operations	1547.87	1313.72	609.11	225.85	79.8%
Other Income	5.29	6.66	0.85	0.26
Operational Cost	1208.57	1020.84	449.67	173.91
Employee Cost	17.51	14.92	6.49	13.46
Other expenses	155.50	151.32	77.19	24.60
EBITDA	171.57	133.30	76.61	14.14	111.2%
EBITDA margin%	11.08%	10.15%	12.58%	6.26%
Depreciation	3.18	3.20	1.35	0.28
Interest	9.98	11.88	10.04	2.45
Exceptional Items	0.00	0.00	-0.67	0.00
PBT	158.41	118.22	64.55	11.41	118.0%
Total tax	40.05	31.68	16.75	3.38
PAT	118.37	86.54	47.80	8.04	120.8%
PAT margin%	7.65%	6.59%	7.85%	3.56%

Pre-Offer shareholding of the Selling Shareholders:

S. No.	Name of the Selling Shareholder	No. of Equity Shares held	Percentage of the pre-Offer paid Up equity share capital (%)
1.	Sameer Mehta	38,370,000	40.05%
2.	Aman Gupta	38,370,000	40.05%
3.	South Lake Investment Ltd.	18,510,000	19.32%
Total		95,250,000	99.42%

Boat-Imagine Marketing IPO Offer for Sale Details:

S. No.	Name of the Selling Shareholder	Amount Of Offer For Sale
1.	Sameer Mehta	up to ₹150 cr.
2.	Aman Gupta	up to ₹150 cr.
3.	South Lake Investment Ltd.	up to ₹800 cr.

Boat-Imagine Marketing IPO Strengths:

Imagine Marketing Limited’s digital-first business approach has conferred upon it a further set of inherent competitive advantages in comparison to traditional consumer brands, such as (i) an enhanced reach to the new-age consumer, (ii) increased accessibility through the online channel, (iii) a wider assortment and depth of products in various sub-categories, (iv) the creation of innovative product lines. These advantages enable the company to offer distinctive aspirational products customized to the preferences of the target cohorts of consumers.

Since the launch of the company’s flagship brand “boAt” in 2014, it has consistently invested significant resources in enhancing the strength and appeal of the brand. The success of its approach has been evidenced by its strong market positioning within the categories in which it operates as well as the fact that it has also replicated the success of its “boAt” brand across multiple product categories in line with the company’s vision to develop a portfolio of products across multiple lifestyle categories.

Ability to understand consumer behavior and garner relevant category insights, Nuanced marketing capabilities to efficiently generate high levels of consumer engagement and sales, and Strong platform capabilities across design, research and development, technology relationships and supply chain, has enabled growth and continued to allow the company to build a presence across multiple consumer categories

Imagine Marketing Limited’s founders and Promoters, Aman Gupta and Sameer Mehta have been working together since its inception in 2013, and have deep domain expertise, an impressive track record, and have demonstrated an ability to successfully create, build and grow the business

Boat-Imagine Marketing IPO Risk Factors:

Imagine Marketing Limited operates in an industry with several competitors, including large and established ones, and it may fail to compete successfully against existing or new competitors, which may reduce the demand for the products and services of the company which may lead to reduced prices, operating margins, profits and further result in loss of market share across product categories.

The company relies on a number of third-party contract manufacturers and component suppliers for production of its products. Any shortage and cessation in supply from these contract manufacturers or component suppliers could adversely affect the business, results of operations and cash flows.

All or substantially all of the company’s contract manufacturing is from several manufacturers located in China, with a developing group of manufacturers in Vietnam and India. In the event that China is affected by any adverse conditions that disrupt production and/or deliveries from the contract manufacturers, the company’s ability to deliver the products on a timely basis could be negatively affected, which may adversely affect the business and results of operations

Imagine Marketing Limited is heavily reliant on its relationships with certain online marketplaces and offline distributors. Disruptions to such relationships, changes in their business practices, failure to meet payment schedules and provide timely and accurate information, or conflicts among its distribution channels could adversely affect the business, cash flows and results of operations.

Imagine Marketing Limited’s business is concentrated in the audio and, to a lesser extent, the wearables category, and variations in consumer demand and market sentiment for these product categories could adversely affect the business, results of operations and financial condition.

Objects of the Offer:

Imagine Marketing Limited proposes to utilize the Net Proceeds towards funding the following objects: