Homegrown wearable and audio brand Boat is gearing up for a $300-500 million IPO, aiming to hit the market next financial year. Sources reveal that ICICI Securities, Goldman Sachs, and Nomura have been selected as bankers for the public offering, with Boat potentially eyeing a valuation above $1.5 billion.

Boat initially filed for an IPO in 2022 but paused due to market conditions. Instead, it raised $60 million in private funds through convertible notes from Warburg Pincus and Malabar Investments, valuing the company at a minimum of $1.2 billion.

Boat has selected four bankers, with ICICI Securities as the lead, and plans to file for a public offering in the next financial year.

Boat’s revenue dropped 5% in FY24 to Rs 3,285 crore, while losses reduced to Rs 70.8 crore. Despite market challenges, the company saw improved sales during Diwali and achieved positive EBITDA in FY24.

Recent IPO trends show companies like Swiggy surpassing expectations. At the same time, firms like FirstCry, Ola Electric, and Awfis went public with cautious listing prices, reflecting a careful market approach among new-age brands.

Boat has been internally preparing for an IPO by updating its business plan following its previous draft filing. Cofounder Aman Gupta announced plans to expand operations into the UAE at the ET Soonicorns Summit in September.

Boat’s IPO comes as audio sales improved during the festive season, but the wearables market saw a 10% decline in shipments in June. In FY24’s second half, Boat’s audio sales stayed flat, with shifts toward online sales, and both headphone and speaker segments also showed flat performance.

Founded in 2015 by Aman Gupta and Sameer Mehta, Boat has raised $171 million to date and leads India’s wearables market with a 26.7% share as of Q2 2024.

Despite margin pressure from a price war in the wearables market, Boat expects EBITDA and PBT margin improvements in FY25, supported by efforts to cut warranty, advertising, and promotional costs.

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