In a significant development, multiple investors have lodged complaints with over 50 authorities, including the Securities and Exchange Board of India (SEBI) and the Finance Ministry, demanding an investigation into the SME IPO filings of Rosmerta Digital Services Ltd.
The company, founded three years ago, seeks to raise more than ₹200 crore through its IPO.
The complaints centre on allegations that Rosmerta’s promoters, Mr. Kartick Vivek Nagpal and Mr. Karan Vivek Nagpal, along with unnamed associates, intentionally withheld crucial information in their Draft Red Herring Prospectus (DRHP). These omissions allegedly mask links to Mr. Vivek Nagpal, their father, who has a history of involvement in capital market manipulation, insider trading, and money laundering.
Rosmerta Digital Services Promoters Accused of Hiding Key Information in IPO Filing
A prominent investor, Rohit Vijay Nirmal from Mumbai, formally accused the Nagpal family of fraudulent practices, including concealing material information about business operations, misrepresenting key details in the DRHP, and engaging in criminal financial activities. Nirmal’s complaint claims that Mr. Vivek Nagpal, who previously faced penalties and a market ban for his association with the 2001 stock market scandal, remains connected to Rosmerta’s operations through indirect control and influence.
Further, Nirmal’s complaint outlines concern over Mr. Vivek Nagpal’s substantial sway over Rosmerta’s governance, describing his influence through proxies and family-run trusts, like the Shree Bankey Bihari Family Trust. These connections, he claims, raise serious conflicts of interest and threaten corporate governance standards.
Highlighting the risks to retail investors, Nirmal urged SEBI and the Finance Ministry to halt Rosmerta’s IPO and investigate the alleged undisclosed involvement of Mr. Vivek Nagpal. He called for immediate suspension of all listing progress for Rosmerta Digital Services Ltd until these concerns are thoroughly examined.
Also read: Reliance Jio set for 2025 IPO as retail listing delayed
