Audio and wearables brand boAt has highlighted several potential risks in its draft papers filed for its ₹1,500 crore IPO, as it prepares to enter India’s public markets. The company, officially known as Imagine Marketing Ltd, warned investors about challenges related to heavy dependence on imports, rising competition, and fluctuating consumer demand in the electronics sector.
boAt noted that a significant portion of its products and components are sourced from China and other Asian markets, making it vulnerable to supply chain disruptions, trade restrictions, and currency volatility. The company also cited intense competition from global and domestic brands such as Noise, Fire-Boltt, OnePlus, and Apple, which could impact pricing and market share.
Another major concern involves rapidly changing consumer preferences and the short product life cycle of electronics, which could affect sales if the brand fails to keep up with technology trends.
boAt further warned that dependence on third-party manufacturers, rising input costs, and regulatory changes could pressure profitability. Despite these challenges, the company emphasized its strong brand equity, expanding portfolio, and plans to invest IPO proceeds in debt reduction, manufacturing expansion, and new product innovation, positioning itself for long-term growth in India’s booming smart wearables market.
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