Imagine Marketing, which owns the consumer electronics brand boAt, has once more postponed its initial public offering despite obtaining regulatory approvals, sources revealed to CNBC-TV18.
Sources close to the situation indicate that the company has temporarily halted the public offering to reevaluate market conditions and its own readiness. This delay adds to boAt’s ongoing attempts to penetrate the public markets, especially during a period of increased investor scrutiny on new-age consumer companies.
This marks the second time boAt has attempted to go public, with its IPO plans once again on hold.
boAt initially submitted draft IPO documents to the Securities and Exchange Board of India (SEBI) in January 2022, aiming to raise approximately ₹2,000 crore. However, that initiative was abandoned later that year as market conditions worsened and valuations for consumer internet and tech firms declined sharply.
The company revived its listing ambitions in 2025, choosing SEBI’s confidential pre-filing method. This approach allows firms to interact with the regulator without making disclosures public right away. SEBI subsequently issued its observation letter in September 2025, allowing Imagine Marketing to advance with the IPO.
An updated draft red herring prospectus was filed, proposing an issue size of around ₹2,000 crore, which included both a fresh issue and a substantial offer for sale. The offer for sale was designed to facilitate partial exits for existing investors.
Despite navigating these regulatory processes, the company opted to postpone the issue prior to disclosing price bands or launch dates.
The IPO initiative faced amplified scrutiny following the release of details from the updated draft prospectus, which revealed observations from the company’s statutory auditor, raising concerns regarding internal financial controls and reporting procedures.
Attention was also drawn to financial performance. Although boAt has achieved notable scale in the audio and wearables sector and reported considerable topline growth, profitability has come under pressure. High inventory costs, increased marketing expenditures, and fierce competition have constrained margin growth and raised doubts about earnings sustainability.
The deferment further follows recent changes in senior leadership. Co-founders Aman Gupta and Sameer Mehta stepped away from their executive roles in late 2025, reducing their involvement in daily operations. These leadership exits have heightened concerns regarding governance, continuity, and execution at a critical juncture of the IPO process.
Analysts monitoring the company have highlighted a mix of leadership departures, auditor concerns, financial discrepancies, and valuation expectations as potential risks for the IPO, particularly in a market that has become cautious toward new-age consumer and D2C businesses.
boAt’s capital table includes prominent investors like Warburg Pincus, Qualcomm Ventures, Innoven Capital, and Fireside Ventures, many of whom anticipated partially monetizing their holdings through the IPO.
Imagine Marketing did not reply to CNBC-TV18’s email inquiries.
