What makes Boat’s 2000 Cr IPO both impossible and promising
Incredibly unlikely, yet incredibly promising
Boat, one of India’s largest direct-to-consumer, audio-focused electronics brands, is set to file a draft red herring prospectus for an Rs. 2000-crore initial public offering with India’s securities and exchange board this week.
The New Delhi Based company has crossed Rs.1500cr in terms of revenue while posting a profit of Rs. 78.6Cr.Boat seeks $1.5 billion-$2 billion valuations with its Rs. 2000 Crore IPO.
From the total size of Rs. 2000 Cr. Offer Rs.1100cr is the offer for sale, and Rs.900Cr is the issue of new shares. Aman Gupta and Sameer Mehta both have a 28.3% stake in Boat and will get Rs. 150Cr if this IPO gets approved.
From FY19–20, Boat’s revenue has grown at a CAGR (Compound Annual Growth Rate) 141.18%, while its 1H’22 revenue has already surpassed its entire FY21 revenue.
Some factors which may affect their IPO are their dependence on other manufacturers and suppliers. For example, Boat imports 89% of its products from China, and they sell 8 out of 10 products through intermediaries like Amazon and Flipkart.
If Boat manages to find a solution to these two bottlenecks, it may even get more significant value in the coming time.
