boAT Parent Firm Files Draft Papers For IPO Via Confidential Pre-Filing

Wearables brand boAt's parent company, Imagine Marketing, announced on Monday that it had filed draft papers with the Securities and Exchange Board of India for an initial public offering through a confidential pre-filing route.

This marks the company's second attempt to go public. The confidential pre-filing route allows the company to withhold public disclosure of details under the draft red herring prospectus until later stages.

The company has filed the pre-filed DRHP with SEBI and stock exchanges under the Issue of Capital and Disclosure Requirements Regulations in relation to the proposed IPO of its equity shares on the mainboard of the stock exchanges, according to a public notice.

Previously, the company had filed draft papers in January 2022 for floating a Rs 2,000-crore IPO. This comprised a fresh issue of equity shares worth Rs 900 crore and an offer for sale aggregating up to Rs 1,100 crore.

However, it clarified that pre-filing DRHP does not guarantee the company will go ahead with the maiden public offering.

Established in 2013 by Aman Gupta and Sameer Mehta, Imagine Marketing offers a product portfolio ranging from audio gear and smart wearables to personal grooming products and mobile accessories.

Imagine Marketing's decision to opt for the confidential pre-filing route is part of a growing trend among Indian companies. Recently, Tata Group financial services arm Tata Capital and edtech unicorn PhysicsWallah also opted for the confidential filing route.

In 2024, food delivery giant Swiggy and supermart major Vishal Mega Mart successfully floated their IPOs after making confidential filings.

Earlier, online hotel aggregator Oyo had taken the confidential filing route in 2023 but eventually did not proceed with its IPO. Tata Play, formerly known as Tata Sky, was the first company in India to utilise this option for an IPO in December 2022, and secured SEBI's observation letter in April 2023. Although it later withdrew from the public issue.

Market experts believe that the confidential pre-filing route provides flexibility and reduces pressure on companies to go public. Unlike the traditional route, where IPOs must be launched within 12 months of SEBI's approval, the pre-filing route allows companies to float an IPO within 18 months from SEBI's final comments.

This route also offers the flexibility to adjust the primary issue size by up to 50% until the updated draft red herring prospectus or UDRHP stage, they added.

(With inputs from PTI)