Imagine Marketing Limited IPO:Details, Price, Strength and Risks

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Imagine Marketing Limited is the owner of the popular electronic wearables/audio brand boAt. Aman Gupta and Sameer Mehta started this company in 2013, a year later the flagship brand boAt was incorporated. Today, the portfolio of Imagine Marketing Limited consists of earphones, headphones, Bluetooth speakers, personal care products and mobile accessories.

Imagine Marketing Limited filed its DRHP to SEBI to raise funds worth Rs. 20,000 million by going public with an IPO. Despite receiving approval from SEBI, Imagine Marketing is yet to announce a launch date for its IPO.

Additional Read: Fabindia Limited IPO

According to the latest news reports, the Imagine Marketing Limited IPO is likely to be launched in FY 2025-26. Read this blog till the end to learn about Imagine Marketing Limited and plan your IPO investment strategically. 

About the Company

Imagine Marketing Private Limited is the parent company of the popular audio and wearables brand boAt. The International Data Corporation recognised and ranked Imagine Marketing Limited in fifth position in the Worldwide Quarterly Wearable Device Tracker in Q2CY2022. Reports also state that Imagine Marketing Limited is among the 5 leading companies with a positive YoY growth of 76.6% in 2022.

In the wearables sector, this is the fifth company globally to introduce an AMOLED display, larger screen size and Bluetooth calling features. In the Indian wearable sector alone, Aman Gupta's Imagine Marketing holds a 31% market share till July 2022.

Initially, Imagine Marketing Limited started its journey as a brand for hearable products to suit the audio needs of the youth. Today, the product mix of Imagine Marketing involves more than just audio wearables. It comprises audio accessories like wired headphones, earphones, wireless headphones, neckbands and True Wireless Stereo. Besides these, Bluetooth speakers, gaming accessories, smartwatches, mobile accessories and personal care appliances are also offered.

Imagine Marketing upholds a digital-first approach as this has allowed the company to enter various target markets and cater to audience segments accordingly. Using its online presence, Imagine marketing has reached around 90% of PIN codes around India. The company also caters to its audiences by supplying products to retail stores and brand outlets in malls.

Additional Read: How to Invest in an IPO Online

According to this company’s financial metrics, its total income grew from Rs. 2,261.12 million in FY 2019 to Rs. 13,203.75 million in FY 2022. The profit after tax increased from Rs. 80.37 million in FY 2019 to Rs. 865.37 million in FY 2021.

IPO Details and Objectives

Imagine Marketing Limited filed its preliminary documents on January 26, 2022, with the plan to launch an IPO. This company is planning to sell shares worth Rs. 20,000 million as a fresh issue and a separate Offer for Sale.

According to its DRHP, this company will offer shares aggregating up to Rs. 9,000 million as a fresh issue. It shall also place equity shares worth Rs. 11,000 million as an OFS by promoters and a shareholder.  The selling shareholders are South Lake Investment Limited, Aman Gupta and Sameer Mehta for the upcoming Imagine Marketing Limited IPO.

The stakeholders along with underwriters of this company have decided on a face value of Rs. 1 per equity share. It is yet to announce the floor and ceiling prices of the upcoming shares along with bidding dates and lot size.

Imagine Marketing Private Limited aka boAt is also planning to utilise its net proceeds from upcoming IPO to repay debts in partial or full. It also plans to fulfil certain general corporate requirements with this amount. 

Additiona Read: Difference Between NFO and IPO

Strengths

Here are a few strengths of Imagine Marketing Limited that can make its upcoming IPO worth investing in.

  • This brand is India's largest digital-first brand that holds a predominant market position across several fast-growing product categories.
  • This company is run by professional founders with deep-rooted experience, expertise and track record in the consumer product industry.
  • Its digital-first platform allows the company to segment its target audience into various categories and cater to their demands accordingly. This allows the company to build a better brand image by customer-oriented market positioning. 
  • boAt, the flagship company of Imagine Marketing is a popular consumer brand today with a clear value proposition. 

Risks Associated

Besides the above strengths, several factors act as a risk to Imagine Marketing Limited. These factors can hamper the company’s brand image and business adversely. 

The points below highlight a few risks that you must know before investing in Imagine Marketing Limited's IPO. 

  • Imagine Marketing Limited highly relies on the strength and brand image of its flagship brand for its success. Factors like unsuccessful publicity attempts, brand ambassador controversy and poor product introduction can hurt the brand image of boAt and Imagine Marketing Limited.
  • This company relies on a large number of third-party contractual manufacturers and suppliers for manufacturing products under this brand. Any shortage of suppliers or slowdown of workforce can adversely affect this company's operation and cash flow. 

Summary

Imagine Marketing Limited started its journey in 2014 with its flagship company boAt. Today, boAt is the number 1 Indian brand in the truly wireless and headphones product category.

However, before investing in the upcoming Imagine Marketing Limited IPO, you must know that all equity and related investments carry a certain degree of risk. Therefore, consider reading the DRHP thoroughly to determine whether Imagine Marketing Limited IPO is the right option for you or not. 

If this fast-paced consumer wearables sector interests you, you can consider investing in this upcoming IPO. You can explore our website and open a Demat and Trading account to commence your investment journey.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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Frequently Asked Questions

Who are the Book-Running Lead Managers for Imagine Marketing Limited IPO?

Answer Field

Credit Suisse Securities Limited, ICICI Services Limited, BofA Services India Limited and Axis Capital Limited are the Book-Running Lead Managers for Imagine Marketing Limited IPO.

Where will the equity shares be listed for the upcoming boAt IPO?

Answer Field

The company has yet to disclose the listing place for its upcoming IPO shares.

Who is the registrar of the upcoming Imagine Marketing Limited IPO?

Answer Field

Link Intime Limited is the registrar appointed for Imagine Marketing Limited IPO.

What is the opening date for the upcoming Imagine Marketing Limited IPO?

Answer Field

The company has yet to declare the opening and closing dates for the Imagine Marketing Limited IPO.

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