Will the boat sail? Imagine Marketing Ltd., well-known for its headphones, earbuds, smartwatches, speakers, and charging accessories under the brand name boAt, is all set to hit the market with its IPO. But before you jump to sail the boat IPO, let us understand more about the offer, the objects of the IPO, the company, industry, finances, and more, to help you decide whether to sail or give it a miss.
About the Offer
boAt plans to raise ₹1,500 crore through this IPO.
The structure is:
| Component | Amount |
|---|---|
| Fresh Issue | ₹500 crore |
| Offer for Sale (OFS) | ₹1,000 crore |
| Total Issue Size | ₹1,500 crore |
Here’s the key point: two-thirds of the Boat IPO is OFS (Offer for Sale), which means ₹1,000 crore will go to the existing shareholders selling their stake; only the remaining one-third goes to the company.
Objects of the Offer
Working Capital Requirement – ₹225 crore
| Financial Year | Amount to be utilised |
|---|---|
| By March 31, 2026 | ₹77 crore |
| By March 31, 2027 | ₹68.4 crore |
| By March 31, 2028 | ₹79.6 crore |
| Total | ₹225 crore |
Branding & Marketing – ₹150 crore
| Financial Year | Amount to be utilised |
|---|---|
| By March 31, 2026 | ₹28 crore |
| By March 31, 2027 | ₹60 crore |
| By March 31, 2028 | ₹62 crore |
| Total | ₹150 crore |
General Corporate Purposes
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Remaining balance from the fresh issue
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No exact number disclosed in DRHP
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Typically includes: scalability, product development, technology, business expansion, contingencies
Industry OverView
India’s consumer devices market (audio, wearables, chargers & accessories) is one of the fastest-growing tech categories. The growth in this segment is primarily driven by increased smartphone adoption, digital lifestyles, and rising affordability.
Overall Consumer Devices Market
| Metric | FY2020 | FY2025 | FY2030 (Projected) |
|---|---|---|---|
| Market Size (₹ crore) | 60,700 | 1,11,500 | 1,78,200 – 2,03,800 |
| CAGR (%) | — | ~13% (2020–2025) | 10–13% (2025–2030) |
Even at this scale, this category only forms close to 1.3% of India’s retail space, compared to 3–5% globally, indicating significant long-term potential for growth.
Audio Devices Segment
| Category | FY2025 Market Size | FY2030 Projection | CAGR (Projected) |
|---|---|---|---|
| Total Audio Market | ₹48,900 cr | ₹77,700–₹90,100 cr | 10–13% |
| Personal Audio (TWS, Neckbands, Headphones) | ₹20,200 cr | ₹26,800–₹30,400 cr | ~10–12% |
| Large Audio (Speakers, Soundbars) | ₹15,900 cr | ₹31,800–₹38,900 cr | ~15–18% |
Wearables Market
| Metric | FY2020 | FY2025 | FY2030 |
|---|---|---|---|
| Market Size (₹ crore) | 3,000 | 10,000 | 20,300–23,600 |
| CAGR | — | ~28% (2020–2025) | 15–19% (2025–2030) |
Smartwatches (93% of category)
| Year | Market Size (₹ crore) |
|---|---|
| FY2020 | 1,800 |
| FY2025 | 9,300 |
| FY2030 | 18,200–20,600 |
Penetration comparison (% of smartphone users buying smartwatches):
| Country | Penetration |
|---|---|
| India | ~14% |
| China | 19% |
| U.S. | 31% |
The Indian consumer tech accessories and wearables market is growing rapidly, led by rising digital consumption, a large underpenetrated user base, affordable pricing, and improving domestic manufacturing, thereby providing growth opportunities to brands like boAt.
Company Overview – boAt
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Founded: 2015
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Category: Digital-first lifestyle electronics brand
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Key segments:
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Audio
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Wearables
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Chargers and accessories
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FY25 reported selling over 3.4 crore devices
boAt has grown on the back of:
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Celebrity endorsements
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Strong online distribution (Flipkart/Amazon)
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Good price-to-value positioning
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Fast product refresh cycles
However, its dependence on one primary category (audio) remains high.
Financials
| Metric | Q1 FY26 | Q1 FY25 | FY25 | FY24 | FY23 |
|---|---|---|---|---|---|
| Revenue from operations | 627.79 | 566.92 | 3,070.39 | 3,114.97 | 3,361.67 |
| Total Income | 638.44 | 572.37 | 3,097.81 | 3,135.35 | 3,403.18 |
| Profit / (Loss) | 21.35 | -31.08 | 61.08 | -79.68 | -129.45 |
| EBITDA | 41.58 | -20.86 | 142.52 | 7.70 | -59.76 |
| EBITDA Margin | 6.6% | Negative | ~4.6% | ~0.2% | Negative |
| Total Liabilities (June 2025) | ₹1,188.75 crore |
Strength & Weakness
Strengths
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Strong brand recall
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Market leadership in audio
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Affordable positioning
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Omni-channel (online + offline)
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Volume-driven growth capability
Weaknesses / Concerns
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Flat revenue trend
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Thin margins and profitability dependent on scale
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High competition
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Heavy reliance on the audio category (>80%)
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IPO includes a large OFS portion
Major Red Flag – The founders, Aman Gupta and Sameer Mehta, stepped down from their executive roles only 29 days before filing the IPO, raising serious questions about governance and stability at a critical stage.
Verdict — Should You Subscribe?
For long-term, high-risk investors:
Maybe — with caution.
If boAt successfully scales wearables, improves margins, and stabilises leadership, it can justify its valuation over time.
For listing gain seekers or conservative investors:
Not ideal. The large OFS, leadership exits, and margin pressure make near-term performance uncertain.
*Disclaimer: This blog is for informational purposes only and does not constitute investment advice. Investors should consult their financial advisor before investing. Read the company’s RHP for more information
About the Author
Sandip Desai is a stock market professional with over 18 years of experience in the Indian broking and investment space. He holds NISM certifications in Equity Derivatives, Currency Derivatives, Commodity Derivatives, and Mutual Fund Distribution. Sandip is passionate about simplifying financial concepts and helping investors navigate IPOs and capital markets with confidence.
For more information on the upcoming IPO, check the following link.