Complaints Surface Against Rosmerta Before ₹200 Crore IPO Launch
Mumbai, November 14: Fresh concerns have emerged around Rosmerta Digital Services Ltd (RDSL) just ahead of its planned ₹200 crore SME IPO, as multiple complaints have reportedly been submitted to the Securities and Exchange Board of India (SEBI), the Finance Ministry, and other authorities.
According to reports, the complaints target key promoters Kartick Vivek Nagpal, Karan Vivek Nagpal, and trust promoter representative Aarti Nagpal. They have been accused of hiding important business information, misrepresenting financial details, and failing to disclose material facts in the company’s Draft Red Herring Prospectus (DRHP).
Some complainants have also alleged that the company may be linked to wider issues such as market manipulation, insider trading, money laundering, and misuse of loans through connected entities. These allegations have not been proven in court.
Mumbai-based investor Rohit Vijay Nirmal said he has formally approached authorities, accusing the promoters and their associates of suppressing facts and engaging in serious financial misconduct.
Another investor reportedly questioned the credibility of the investment bankers handling the IPO, claiming important details that investors deserve to know were left out of the prospectus.
The complaints further allege that Rosmerta Digital Services presented artificially inflated financial numbers to justify a higher IPO valuation. Concerns were also raised about corporate governance, conflict of interest, and lack of independent decision-making systems within the group.
Complainants have urged regulators to halt the IPO process and conduct a full investigation before allowing the company to proceed with listing, in order to protect retail investors and maintain trust in capital markets.
News source: Information for this article was gathered from a variety of reliable news outlets
