Homegrown audio and wearables model boAt, operated by Think about Advertising and marketing Ltd, has filed an up to date draft purple herring prospectus (DRHP) with the Securities and Trade Board of India (SEBI), lowering its proposed preliminary public providing (IPO) measurement to Rs 1,500 crore from the sooner Rs 2,000 crore.

The revised difficulty includes a contemporary difficulty of fairness shares value Rs 500 crore and a suggestion on the market (OFS) of shares value Rs 1,000 crore by current buyers and co-founders.

In response to the up to date DRHP, South Lake Funding Ltd, a fund managed by Warburg Pincus, will offload shares value Rs 500 crore, accounting for half of the overall OFS. Different taking part buyers embrace Fireplace Ventures (Rs 150 crore) and Qualcomm Ventures (Rs 50 crore).

Among the many founders, Sameer Mehta will promote shares value Rs 75 crore, whereas Aman Gupta, co-founder and chief advertising and marketing officer, is ready to understand Rs 225 crore from the sale.

Out of the Rs 500 crore contemporary difficulty, boAt intends to allocate Rs 225 crore in direction of working capital, Rs 150 crore for branding and advertising and marketing, and the rest for basic company functions.

The corporate’s IPO can be managed by ICICI Securities, JM Monetary, Goldman Sachs, and Nomura, with MUFG Intime serving as registrar.

It plans to deploy its Rs 150 crore advertising and marketing allocation over three years, Rs 28 crore in FY26, Rs 60 crore in FY27, and Rs 62 crore in FY28, to strengthen buyer engagement and reinforce its place as a number one digital-first client model.

As of the most recent submitting, South Lake Funding stays boAt’s largest shareholder with a 39.35% stake, adopted by co-founders Aman Gupta (24.76%) and Sameer Mehta (24.75%). Different key buyers embrace Fireplace Ventures (3.28%), Qualcomm Ventures (2.28%), and Malabar Choose Fund (1.20%).

Based in 2016, boAt operates on a direct-to-consumer (D2C) mannequin, providing reasonably priced, design-led merchandise throughout audio, wearables, and cell equipment. The corporate sells by means of main on-line marketplaces like Amazon and Flipkart, its personal web site, and over 12,000 offline retail shops throughout 25 states and 5 union territories. It additionally has a presence within the Center East, Nepal, and different South Asian markets, supported by over 115 third-party service centres.

Monetary efficiency

boAt reported working income of Rs 3,073 crore and a web revenue of Rs 61 crore in FY25, marking a turnaround from a lack of Rs 79.6 crore in FY24.
In Q1 FY26, income stood at Rs 628 crore with a web revenue of Rs 21.35 crore.

The audio section remained the first income driver, contributing Rs 2,586 crore (84.23%) of complete working income in FY25, adopted by wearables (Rs 330 crore, 10.76%) and different merchandise (Rs 153.9 crore, 5.01%).

The corporate famous a gradual decline in wearable revenues over the previous three years, from Rs 901 crore in FY23 to Rs 550 crore in FY24 and Rs 330 crore in FY25, citing heightened competitors, softening demand, and falling common promoting costs.

Promoting and promotion bills rose 6.5% year-on-year to Rs 389.7 crore in FY25, whereas spending fell 34.5% year-on-year in Q1 FY26 to Rs 53 crore.

boAt’s revised IPO plan comes after it re-filed its DRHP in April 2025 by means of SEBI’s confidential route. The sooner IPO proposal, filed in 2022, sought to lift Rs 2,000 crore however was deferred amid unstable market situations and profitability challenges.