boAt (Imagine Marketing) IPO – Deferred Again Despite SEBI Clearance

Expert Analysis:

• Imagine Marketing, the parent of boAt, has again deferred its IPO even after receiving SEBI’s observation letter and completing follow‑on filings, choosing to pause the issue to reassess market conditions and internal readiness; this is the second time its listing plans have been put on hold.

• The company had revived its IPO plan in 2025 via SEBI’s confidential pre‑filing route and then filed an updated DRHP for roughly ₹2,000 crore (fresh issue plus sizeable OFS to give partial exits to existing investors), but has decided to defer before announcing price bands or launch dates.

• Disclosures in the updated draft drew scrutiny: the statutory auditor flagged issues around internal financial controls and reporting processes, while financials showed strong scale and topline growth in audio/wearables but weak profitability due to high inventory costs, heavy marketing spends and intense competition, raising doubts about earnings sustainability.

• The risk perception was further heightened by governance and continuity concerns after co‑founders Aman Gupta and Sameer Mehta stepped down from executive roles in late 2025, just as investors were already cautious on new‑age consumer and D2C IPOs; marquee shareholders like Warburg Pincus, Qualcomm Ventures, Innoven Capital and Fireside Ventures, who were slated for partial exits via OFS, will now have to wait longer for liquidity.