Has boAt Withdrawn its IPO?

Look no further if you want to know if the BoAt has withdrawn its IPO and, if so, the significant reasons for it. Imagine Marketing Ltd., BoAt’s parent company, is a D2C electronics brand famous for its innovative and affordable audio products. The Mumbai-based company, to expand its hold in the consumer electronics industry in India, filed DRHP with SEBI on January 26, 2022. It is to generate an IPO or initial public offering to raise around Rs. 2,000 crores from the public. But news causing ripples in the market is that boAt has withdrawn its IPO, which will impact its unlisted share price. 

So, check out the news of boAt withdrawing its IPO. Is it accurate, and if it is true, what are its reasons, and how will the decision impact its unlisted share price? 

What is boAt?

High-quality wired or wireless headphones have become in high demand with the increasing sales of smartphones worldwide and in India. Also, in this digitalised world, the demand for smartwatches is rising because of their many benefits. It is here that Imagine Marketing Limited, the parent company of boAt, started sailing in 2014. In nearly a decade, it has become a market leader in the D2C or direct-to-consumer to sell ultra fashionable and durable audio products and smartwatches. The BoAt is the acronym for boAt heads wearing wireless earbuds to hear clear audio without external disturbances.  

Has boAt withdrawn its IPO?

BoAt, with its growing business verticals, wanted to expand its business and hence filed DRHP  or Draft Red Herring Prospectus with SEBI in January 2022. Since it is the first step for boAt to come out with its IPO, its unlisted share price rose to trade and is now around Rs. 1,300. But for many reasons, Imagine Marketing Ltd withdrew its IPO. The significant reason for this is as per the guidelines before the IPO; boAt got permission only to raise Rs. 180 crores from its existing shareholders. But after withdrawing the IPO, BoAt confirmed raising 500 crores to fund its expansion plans, which many financial experts consider proactive.

How does boAt’s withdrawal of IPO impact its unlisted share price?

The unlisted boAt share price hit a bottom of Rs. 775 after announcing its withdrawal from IPO. However, its proactive step to raise funds from existing shareholders raised the share price again to around Rs. 1,300 during its IPO announcement. Also, with the boAt company confirming to come out with an IPO in the next one to one and a half years, the unlisted boAt price will only rise. Also, with its excellent results increasing, sales of smartwatches, wired and wireless headphones, and others will increase in price. 

Last words:

The above facts will help you know that the BoAt has withdrawn its IPO. How its decision to raise its funds from existing shareholders to Rs. 500 crores positively impacts its unlisted share price and boAt valuation to buy it from the best online platform to make excellent profits.

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