boAt reduces IPO size to Rs 1,500 Cr

Consumer electronics brand boAt has filed an updated draft red herring prospectus (DRHP) with SEBI, reducing its IPO size to Rs 1,500 crore from the earlier Rs 2,000 crore.

The Rs 1,500 crore IPO includes a fresh issue of equity shares worth Rs 500 crore, while existing shareholders and co-founders will offload shares worth Rs 1,000 crore through an offer for sale (OFS).

According to the DRHP, the OFS will see participation from South Lake Investment (Warburg Pincus), which will offload shares worth Rs 500 crore, accounting for half of the total OFS. Fireside Ventures and Qualcomm Ventures will sell shares worth Rs 150 crore and Rs 50 crore, respectively. 

The co-founders will also participate in the OFS, with Sameer Mehta selling shares worth Rs 75 crore and Aman Gupta, co-founder and CMO, set to realise Rs 225 crore from the IPO.

Out of the total fresh issue proceeds, Rs 225 crore will be used for working capital needs and Rs 150 crore for branding and marketing. The remaining funds will go towards general corporate purposes.

The IPO will be managed by ICICI Securities, JM Financial, Goldman Sachs and Nomura, while MUFG Intime will act as registrar.

As on the date of UDRHP, South Lake Investment Ltd (Warburg Pincus) is the largest shareholder in boAt with a 39.35% stake, while co-founders Sameer Mehta and Aman Gupta hold 24.75% and 24.76% stakes, respectively. Other key investors include Fireside Ventures (3.28%), Qualcomm Ventures (2.28%), and Malabar Select Fund (1.20%).

Founded by Aman Gupta and Sameer Mehta, boAt operates on a direct-to-consumer (D2C) business model, focusing on affordable, stylish, and high-quality audio products, wearables, and accessories. The brand drives sales through online marketplaces like Amazon and Flipkart, its own website, and maintains a strong offline presence across retail stores.

boAt filed its Draft Red Herring Prospectus (DRHP) with SEBI via confidential route in April 2025.

In the fiscal year ended March 2025, boAt reported Rs 3,073 crore in operating revenue and a net profit of Rs Rs 61 crore, turning around from loss of Rs 79.6 crore in FY24.

In the first quarter of FY26, the company reported operating revenue of Rs 628 crore and a net profit of Rs 21.35 crore.