boAt’s IPO plan: Rs 150 crore for marketing as brand takes centre stage

New Delhi: Imagine Marketing, the parent of boAt, has filed an updated draft red herring prospectus (UDRHP) with SEBI for a Rs 1,500 crore IPO, including a fresh issue of Rs 500 crore and an offer for sale of Rs 1,000 crore. 

The company plans to use Rs 225 crore for working capital and Rs 150 crore for “brand and marketing expenses.” 

On the sell side, South Lake Investment will offer shares worth Rs 500 crore. Co-founder Aman Gupta plans to offload Rs 225 crore, co-founder Sameer Mehta Rs 75 crore, Fireside Ventures Rs 150 crore and Qualcomm Ventures Rs 50 crore, according to the updated filing details reported by business dailies. 

The filing shows advertising and promotion expenses of Rs 389.7 crore in FY25 and Rs 365.7 crore in FY24, with Rs 53.195 crore in the quarter ended June 30, 2025 (Q1 FY26). 

The brand thesis is explicit: boAt tells investors that the strength of its flagship “boAt” brand and its premium sub-brand “Nirvana,” launched in 2023, will heavily influence competitiveness and future sales. 

The filing noted Nirvana is in early stages with limited revenue contribution, and that success hinges on awareness, positioning, acceptance, competition, and effective marketing and distribution. It cautioned that “maintaining and enhancing the reputation of our ‘boAt’ brand and sub-brand ‘Nirvana’ is critical,” while flagging risks from unsuccessful product introductions, quality or service issues, and adverse publicity around brand ambassadors. 

The document also cites the potential for social media flare-ups, pointing to an April 2024 post alleging poor quality and warranty service as events that can dent sentiment even without formal complaints. 

Creator and celebrity-led marketing remains central to demand generation, but the UDRHP warns that controversies or regulatory scrutiny of influencer content can spill over to the brand. 

The company adds that under-investing in marketing can itself erode brand equity, another reason it has earmarked funds for brand building in the offer.

boAt, founded in 2013, has expanded from audio accessories into smartwatches, grooming products and mobile accessories, with wearables lifting the revenue base. 

The company had earlier attempted a Rs 2,000 crore IPO in January 2022 and returned via SEBI’s confidential pre-filing route in April before the updated draft went public in October.