Consumer electronics brand boAt is preparing for another attempt at going public, aiming to raise ₹2,000 crore through an IPO in FY25-26. Sources tell CNBC-TV18 that the company will soon file a confidential draft red herring prospectus (DRHP), following the same strategy used by Swiggy for its IPO.

This confidential filing route, introduced by SEBI in November 2022, allows companies to submit their IPO documents privately. It offers several advantages, including protecting sensitive business information from competitors, providing greater flexibility in timing the IPO, and shielding companies from premature public scrutiny and potential legal challenges.

With this approach, boAt can assess market conditions and finalise its offering without immediate exposure to investors and analysts.

Founded in 2013, with its flagship brand launched in 2014, boAt has grown into a leading player in India’s wearables market, holding a 26.7% market share as of Q2 2024. However, it has faced challenges in recent quarters.

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In FY24, boAt’s revenue declined by 5% to ₹3,285 crore, while losses halved to ₹70.8 crore. The company’s audio segment remained flat in the second half of the fiscal year, though it saw a boost in sales during the Diwali season after several muted quarters. Despite these hurdles, boAt recorded positive EBITDA in FY24, signalling an improvement in profitability.

This marks boAt’s second attempt at an IPO after it initially filed for a ₹2,000 crore public issue in 2022 but later withdrew due to unfavourable market conditions. Instead, it raised $60 million in private funding, bringing in Warburg Pincus. Apart from that, its key backers include Qualcomm Ventures, Innoven Capital, and Fireside Ventures.

By opting for the confidential filing route, boAt is keeping its IPO plans flexible, ensuring that it times the listing strategically to secure an optimal valuation and navigate market uncertainties effectively.