Are boAt Unlisted Shares In Turbulence In The Grey Market?

boAt has recently withdrawn its IPO in the grey market to expand its business and customer base in the wearable market. In this blog, you can find more details about boAt IPO shares! 

boAt is a renowned name in the Indian consumer electronic industry, mainly in the wearable segment. The company has a wide collection of astounding earphones, earbuds, headphones, speakers and smartwatches. boAt stands apart from its competitors in the market because of its quality, affordability and world-class designs. With all this, the company has managed to attract millions of users nationwide. As a result, boAt unlisted shares have gained significant attention in the unlisted market. 

Imagine Marketing, the parent company of boAt, withdrew its Initial Public Offering (IPO), significantly impacting the price fluctuation of boAt’s pre-IPO shares. If you want to know everything about boAt unlisted shares, read this blog. We have highlighted the current situation on the boAt unlisted shares and the reasons behind its  IPO withdrawal. 

Discover The Reasons For Withdrawal Of boAt IPO

Due to the success of the brand, demand for boAt unlisted shares has been significant. Investors were interested in buying boAt unlisted shares before they went public. However, the trading of boAt unlisted shares in the grey market has been turbulent. Here are the reasons that contributed to such a decision of the company. 

  1. Increased valuation

The primary reason shared by boAt officials for withdrawing the IPO is to expand the business operations. The company plans to raise Rs. 500 crores from its current investors, Warburg Pincus and Malabar Investment. 

2. Market sentiment

Another reason for withdrawing boAt IPO is the fluctuation in the market due to inflation, recession, and the ongoing crisis between Russia and Ukraine. boAt delayed its IPO and focused on developing new business strategies to overcome the challenges posed by the current market situation. 

3. Environment Regulatory

In addition to the above reasons, the updated regulations of the pre-IPO market can also impact their trading in the grey market. Introduction to new rules and changes in the previous ones can affect investors’ sentiments and liquidity in the market segment. 

4. Speculative trading

According to the boAt officials, speculative trading is also a reason for the turbulence of boAt pre-IPO shares in the grey market. Traders often engage in short-term buying and selling to get profit from price fluctuations. 

The aforementioned are the various reasons among many that contributed to the withdrawal of IPO shares. Now, the concern of every investor is the impact of an IPO withdrawal on boAt unlisted shares price. Let’s discuss it in the next section. 

Market Performance Of boAt Over the Years

Like any other startup, boAt also struggled in its initial days. Quality products and impressive designs are two major reasons for its success in the wearable market. After two initial years, the company continuously performs well in the market and sells millions of wearable units annually, almost 10,000 units daily. According to the Registrar of Companies, the boAt revenue during the fiscal year 2022 was Rs. 2873 crores compared to Rs. 1314 in FY21. 

Impact Of Withdrawal Of IPO On boAt Pre-IPO shares 

Want to know the impact of the IPO withdrawal on boAt pre-IPO shares prices? Dive into the history of its unlisted shares performance. If you are an investor and previously bought boAt unlisted shares, you must know the prices. The below table will give you an idea about the fluctuation in boAt unlisted share prices during 2022-2023. 

According to the data in the above table, boAt pre-IPO share price was Rs. 750 in September 2022. The price of boAt unlisted shares peaked in November 2022 at Rs. 930. At this time, the company withdrew the IPO and raised capital of Rs. 500 crores. 

After that, the price of the boAt pre-IPO shares declined and never surpassed Rs 900. The following year, the price of pre-IPO shares again started failing and dropped to Rs. 820 in April 2023. 

Currently, the boAt unlisted shares price is Rs. 760 per share. It is very clear from the table that the impact on the price of the pre-IPO share was huge in the initial days of the announcement of the IPO withdrawal.

boAt IPO: What Will Happen Next?

boAt is a popular wearable brand and becoming a growing company in the electronic industry. The company has effective strategies to grow the business. The IPO withdrawal does not mean the company will not bring the IPO in the future. There were some valid reasons behind withdrawing the IPO, including expanding the business. Investors can soon invest in boAt IPO shares and earn significantly from it. boAt unlisted shares are available for trading. You can buy them using an online trading platform like Stockify.