Exclusive | boAt IPO deferred again despite SEBI clearance, sources say

Imagine Marketing, the parent company of consumer electronics brand boAt, has once again deferred its initial public offering, even after securing regulatory clearances, sources told CNBC-TV18.

According to people familiar with the matter, the company has paused the public issue to reassess market conditions and its internal preparedness. This marks another delay in boAt’s long-running efforts to enter the public markets and comes at a time when investor scrutiny of new-age consumer companies has intensified.

This is boAt’s second attempt at going public—and the second time its IPO plans have been put on hold.

boAt first filed draft IPO papers with the Securities and Exchange Board of India (SEBI) in January 2022, proposing to raise around ₹2,000 crore. That plan was shelved later that year as market conditions deteriorated and valuations of consumer internet and technology companies corrected sharply.

The company revived its listing plans in 2025, opting for SEBI’s confidential pre-filing route. Under this process, companies can engage with the regulator without immediately making disclosures public. SEBI subsequently issued its observation letter in September 2025, effectively clearing Imagine Marketing to proceed with the IPO.

An updated draft red herring prospectus was later filed, outlining a proposed issue size of around ₹2,000 crore, comprising a fresh issue and a sizeable offer for sale. The OFS component was intended to provide partial exits to existing shareholders.

Despite completing these regulatory steps, the company has now chosen to defer the issue before announcing price bands or launch dates.

The IPO push came under growing scrutiny after details from the updated draft prospectus became public. The filing disclosed observations by the company’s statutory auditor, who flagged concerns related to internal financial controls and reporting processes.

Financial performance also drew attention. While boAt has built significant scale in the audio and wearables market and reported strong topline growth, profitability remained under pressure. High inventory costs, elevated marketing expenditure and intense competition limited margin expansion and raised questions about the sustainability of earnings.

The deferment also comes shortly after senior leadership changes. Co-founders Aman Gupta and Sameer Mehta stepped down from their executive roles in late 2025, moving away from day-to-day management. The exits added to concerns around governance, continuity and execution at a crucial stage of the IPO process.

Analysts tracking the company had flagged a combination of leadership exits, auditor observations, financial mismatches and valuation expectations as potential risks for the issue, particularly in a market environment that has turned cautious on new-age consumer and D2C businesses.

boAt’s cap table includes marquee investors such as Warburg Pincus, Qualcomm Ventures, Innoven Capital and Fireside Ventures, many of whom were expected to partially monetise their holdings through the IPO.

Imagine Marketing did not respond to CNBC-TV18’s queries sent via email.