boAt, one of India’s most popular audio and wearables brands, has revised its plans to go public by reducing the size of its proposed Initial Public Offering (IPO). The company, known officially as Imagine Marketing Ltd, has now filed an updated document that brings the IPO size down to around ₹1,500 crore, compared to the earlier plan of ₹2,000 crore. The updated structure includes a fresh issue of shares worth ₹500 crore and an offer for sale of shares worth ₹1,000 crore by the promoters and early investors. The decision reflects the company’s strategy to align its public offering with current market sentiment while maintaining investor confidence.
Why the IPO Size Was Reduced
The IPO was first planned during a time when the market environment was more favorable, especially for consumer brands and new-age companies. However, the market has gone through fluctuations over the past two years, with increased caution among investors. By reducing the size of the IPO, boAt aims to make the offering more realistic and stable. A smaller IPO also increases the chance of better subscription levels, which can help the company start its public journey on a stronger footing. This adjustment suggests thoughtful financial planning rather than fast expansion.
Share Sale by Founders and Investors
The Offer for Sale portion of the IPO involves several major shareholders selling part of their stake. Warburg Pincus, one of boAt’s key investors, will sell the largest share among them. Alongside this, other early backers such as Fireside Ventures and Qualcomm Ventures will also be selling a portion of their holdings. Co-founders Aman Gupta and Sameer Mehta are expected to sell part of their personal stake as well, though they will continue to hold a significant share and remain active in running the company. This step allows long-time stakeholders to partially realize returns on their investment while still showing confidence in the company’s future.
How the Funds Will Be Used
The ₹500 crore raised from the fresh issue of shares will be directed toward strengthening everyday business needs, increasing working capital, and expanding brand activities. A portion is expected to support marketing and awareness campaigns, especially as competition grows in the audio and wearables market. boAt has been known for its strong online presence and youthful brand identity, and the company is likely to continue investing in community-driven branding. Some funds will also be used for general corporate purposes, allowing greater flexibility in responding to market changes.
Market Position and Future Outlook
Founded in 2016, boAt has built a direct-to-consumer model that combines affordability with trendy design. Today, the brand sells through major online platforms and retail stores across India. The company recently returned to profitability, which strengthens its position going into the IPO. boAt’s audio accessories remain its strongest category, while wearables continue to face heavy competition. By improving marketing and product innovation, boAt aims to maintain its lead and expand further into lifestyle tech.
The decision to reduce the IPO size shows that boAt is planning for the long term. With a loyal customer base and a clear identity, the company appears focused on steady growth rather than rushing expansion. The IPO will now be watched closely to see how investors respond to this more measured approach.