For the financial year 2021, boAt is a modern digital commercial products firm and is one of the largest Indian digital audio brands in areas of income from the business. It was created in 2013, and its flagship brand, “boAt,” debuted in 2014. It sells things in a variety of categories. It sells audio wearables like wired and wireless headphones and earbuds (neckbands), Bluetooth devices, and sound systems, among other things. Smartwatches, gaming accessories such as wired and wireless headphones, mice and keyboards, smartphone electronics, and personal grooming appliances. Based in New Delhi, boAt plans to raise $1.50 billion to $2 billion through an initial public offering.
The business was estimated at roughly Rs.2,200 crore last year; thus, this is a significant increase in value. It is an almost 6-fold increase in value in just one year. The previous deal was based on the issuance of Qualcomm shares. According to market reports, boAt could easily attract prices of 5-6 times yearly revenues. It’s unclear how much appetite there is for cases with such high valuations. This article will discuss the public offering of an electronic gadget firm, the boAt IPO date, and which online stock trading app is best to apply for the IPO?
Things Traders Should Know About boAt IPO
Imagine Marketing Ltd, the Indian company behind the well-known boAt brand, filed a DRHP (draft red herring prospectus) in late January 2022. Still, SEBI has yet to comment or approve the IPO. IPOs are typically accepted by SEBI in 2 to 3 months unless the regulator has further questions or clarifications. The company anticipates receiving IPO approval by the end of March or the beginning of April 2022. boAt IPO will be a hybrid of a new issue and an offer for sale, but the firm must first decide on the issue date and price only when SEBI has approved the IPO.
The boAt IPO
The boAt has registered for an initial public offering (IPO) with SEBI and is seeking permission. The IPO consists of an Rs.900 crore new issue and an Rs.1,100 crore offer for sale, bringing the total issue size to Rs.2,000 crore. The price band will determine the precise scope of the issuance and other technical factors such as the number of stocks offered and the final value, which are not yet known.
First, let’s look at the IPO’s OFS (Offer for Sale) part. The early investors and promoters will sell a total of Rs.1,100 crore valuation of stock as an aspect of the offer for sale. There will be no new funds inflow or loss of the capital or EPS due to the OFS component. However, the promoter’s stake sale will improve the company’s free float and make the stock easier to list. South Lake Investments would sell the controlling stake valued at Rs.800 crore in the Rs.1,100 crore offer for sale, with the remaining shares being sold by other partners in the OFS. The Rs.900 crore new issue part will issue new shares in the amount determined by the overall price of the offer.
Let us not consider how boAt will use the monies earned through the new issuance. The proceeds will primarily be used to repay debt and reduce the company’s indebtedness. A portion of the proceeds will also be used to pay back some of the company’s loans to improve the balance sheet. In the fiscal year that ended March 31, 2021, the company made a profit of Rs.78 crore. It follows a total sales of Rs.1,500 crore for the financial year, indicating more than 5% profitability. That is sufficient.
The big names like Axis Capital, ICICI Securities Ltd, Bank of America Securities, also Credit Suisse Securities will lead and manage the IPO of the boAt. They will serve as the issue’s book running lead managers or BRLMs. Following its registration on the Bombay Stock Exchange and the NSE, the stock will be open for trade.
Traders have been keeping an eye on the boAt IPO for a good time now. The IPO is near, and those not ready for it need to pull up their socks and start preparing for it?
How to Prepare for the Upcoming boAt IPO?
The foremost step is to install an online stock trading app. The Kotak Securities Stock Trading Kotak App is the finest app used and trusted by traders for investing and applying for an IPO. Once you install the app, register on it and open a Demat account; if you don’t have one, take the guidance about the upcoming IPOs in the IPO section and apply it accordingly.