boAt plans brand push via IPO; Earmarks Rs 150 crore for marketing

Homegrown audio and wearables major boAt, part of Imagine Marketing Ltd, has filed updated IPO documents with markets regulator Sebi.

As per the revised Draft Red Herring Prospectus (DRHP), boAt plans to raise Rs 1,500 crore—comprising a fresh issue of equity shares worth Rs 500 crore and an offer for sale (OFS) of shares worth Rs 1,000 crore. The issue size is lower than the Rs 2,000 crore it had initially filed for in 2022.

The company plans to utilise the net proceeds to fund working capital requirements of Rs 225 crore, and allocate Rs 150 crore towards brand-building and marketing to enhance product and brand visibility. The remaining funds will go toward general corporate purposes.

According to the IPO document, the Rs 150-crore marketing allocation will be spread over the next three financial years--Rs 28 crore in FY26, Rs 60 crore in FY27 and Rs 62 crore in FY28.

“We are committed to continue investing in strategic brand-building initiatives around our brand ‘boAt’ to further enhance customer engagement and strengthen our position as a leading digital-first consumer brand,” the company said.

In FY25, boAt reported a profit of Rs 61.08 crore, while revenue from operations stood at Rs 3,070.38 crore. The audio category remained the primary growth driver, contributing Rs 2,586.04 crore or 84.23% of total operational revenue, followed by wearables at Rs 330.41 crore (10.76%) and other products at Rs 153.93 crore (5.01%).

Revenue from wearables has declined over the last three fiscals—from Rs 901.5 crore in FY23, to Rs 550 crore in FY24, and Rs 330 crore in FY25--due to increased competition, changing consumer preferences, softening demand and declining average selling prices, the company said.

boAt’s advertising and promotion expenses rose 6.5% year-on-year to Rs 389.7 crore in FY25, compared to Rs 365.6 crore in FY24.

However, in Q1 FY26, ad spend fell 34.5% YoY to Rs 53 crore from Rs 81 crore in Q1 FY25. Advertising spend accounted for 8.74% of total expenses in Q1 FY26, compared to 13.14% in Q1 FY25.

boAt sold over 3.4 lakh units in India in FY25. The company reached over 12,000 offline retailers across 25 states and five union territories as of June 30, 2025. The Gurugram-based company operates in more than 115 third-party service centres and has expanded to the Middle East, Nepal and other South Asian markets.