BoAT IPO: What is Inside the Updated DRHP Filed With SEBI?

Consumer electronics brand BoAt, which is preparing for its initial public offering (IPO), is facing scrutiny after revealing inconsistencies in its financial information. The company’s parent, Imagine Marketing, flagged several mismatches between the data it shared with banks and its own internal records. These details have been disclosed in the updated draft red herring prospectus (DRHP) filed with SEBI.

BoAT Reports Mismatches in Financial Records Across 2023-25

The company stated that the quarterly returns and statements submitted to lenders did not fully match the figures recorded in its books of accounts. These mismatches were seen across financial years 2023, 2024, and 2025.

The company also acknowledged that auditors had raised “unfavourable observations” over the years. Some of these related to the use of funds for purposes that differed from what they were originally allocated for.

Such inconsistencies have drawn attention from the market, especially because they appear so close to the company’s IPO plans.

BoAT IPO: What is Causing Concerns Among Prospective Investors?

The updated DRHP also mentions scrutiny around unreported transactions made to the company’s Singapore-based subsidiary, Kaha Pte Ltd, through another unit. Questions were also raised about excess remuneration paid to directors in FY23.

These issues sparked widespread discussion on social media, with concerns over governance practices and transparency standards within fast-growing consumer brands preparing to go public. 

What Has BoAT Done About To Resolve These Concerns?

BoAt stated that it has started addressing some of the concerns raised in the audit findings. The company said it has obtained a shareholder waiver for the excess remuneration paid to directors.

It also noted that improved internal processes have been put in place to ensure consistent financial reporting from the current financial year onwards.

The leadership structure has also seen changes. Co-founder Aman Gupta has moved to the role of non-executive director, while co-founder and Imagine Marketing CEO Sameer Mehta has taken on the position of executive director.

Read more: New Labour Codes 2025: No Impact on Take-Home Salary if PF Stays at ₹15,000 Limit.

Conclusion

BoAt’s updated DRHP offers a detailed look into inconsistencies and governance gaps that could influence investor sentiment ahead of the IPO. While the company has initiated corrective measures, the disclosures highlight the need for stronger financial discipline and transparency as it moves towards becoming a publicly listed company.

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