Complaints Raised Against Rosmerta Ahead Of ₹200 Crore IPO Launch
Fresh controversy has surfaced around Rosmerta Digital Services Ltd just before its proposed ₹200 crore SME IPO, after several complaints were reportedly submitted to regulators and government authorities raising concerns over the company’s disclosures and financial practices.
According to reports, complaints have been sent to the Securities and Exchange Board of India (SEBI), the Finance Ministry and other agencies. The allegations reportedly involve key promoters Kartick Vivek Nagpal, Karan Vivek Nagpal and trust promoter representative Aarti Nagpal.
The complaints accuse the company of allegedly concealing important business information, misrepresenting financial details and failing to disclose material facts in its Draft Red Herring Prospectus (DRHP).
Some complainants have also raised concerns about possible links to broader financial irregularities, including alleged market manipulation, insider trading, money laundering and misuse of loans through associated entities. However, these allegations have not been proven in court.
Mumbai-based investor Rohit Vijay Nirmal reportedly approached authorities claiming that the promoters and related parties suppressed key information and engaged in serious financial misconduct.
Another investor also questioned the role of the investment bankers associated with the IPO, alleging that several important details which investors should have known were missing from the prospectus documents.
The complaints further claimed that Rosmerta Digital Services may have presented inflated financial figures to justify a higher IPO valuation. Concerns were additionally raised regarding corporate governance practices, conflicts of interest and the absence of strong independent decision-making mechanisms within the group.
Complainants have urged regulators to pause the IPO process and conduct a detailed investigation before permitting the company to move ahead with its public listing, arguing that such scrutiny is necessary to protect retail investors and maintain confidence in India’s capital markets.
News Source : Information for this article was gathered from a variety of reliable news outlets.
