boAt’s parent company, Imagine Marketing Ltd, has filed draft documents with SEBI for a public listing worth Rs 2,000 crore. The filing has been made through the confidential pre-filing route, which keeps IPO details private in the early stage.
This is the company’s second time planning to go public. In 2022, it had filed for a similar IPO, which included a fresh issue of Rs 900 crore and an offer for sale (OFS) of Rs 1,100 crore. However, the IPO was not launched at that time.
The confidential approach saves companies from premature public scrutiny. SEBI enables companies to make use of this methodology in keeping their strategies flexible. As opposed to the conventional approach, in which IPOs are to be offered in 12 months of approval, the confidential approach provides 18 months of time to decide. It also allows them to modify the issue size by 50% before determining the offer.
Established in 2013 by Aman Gupta and Sameer Mehta, Imagine Marketing produces a diverse range of products under the brand boAt. These products include earphones, smartwatches, chargers for mobile devices, grooming devices, among others.
Numerous large Indian firms including Tata Capital, PhysicsWallah, and even Swiggy have availed of this private filing facility in recent months. It was used for the first time by Tata Play in 2022. Even companies like OYO reversed their decision after confidentially filing.
Experts say this route gives time and flexibility to companies, especially during market uncertainty. It helps them quietly test investor interest and adjust their IPO plans accordingly.
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Source: Moneycontrol.
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