Archive · 13 Dec 2025
BoAt IPO: Auditors Flag Financial Discrepancies in Imagine Marketing
Imagine Marketing, the parent company of BoAt, is getting ready to go public with an IPO worth 1,500 crore.
However, its auditors have found some problems in the company's financial records.
They noticed that the money the company borrowed for short periods was used for long-term needs.
There are also worries about whether some of the company's subsidiaries can pay their debts.
Additionally, the company has some unpaid bills and didn't properly check all its property and equipment.
Despite these issues, the company is still planning to raise money through the IPO, with some of the founders and early investors selling parts of their shares.
Imagine Marketing's auditors, BSR & Co LLP, found discrepancies between the financial information provided to banks and the company's books for FY23, FY24, and FY25.
Short-term borrowings were used for long-term capital needs of subsidiary entities in FY23 and FY24.
There is material uncertainty about the ability of subsidiaries Kaha Pte and Imagine Marketing Singapore Pte to meet their liabilities in FY23 and FY24.
The company has arrears in undisputed statutory dues in FY23 and FY25, breached managerial remuneration limits in FY23, and did not physically verify all property, plant, and equipment in FY23.
Imagine Marketing is planning a 1,500-crore IPO, including a fresh issue of Rs 500 crore and an offer for sale of Rs 1,000 crore by founders and early investors.
- Who
- Imagine Marketing (BoAt's parent company) and its auditors, BSR & Co LLP
- What
- Auditors have flagged discrepancies in the company's financial submissions to lenders and its books
- When
- The discrepancies pertain to fiscal years 2023, 2024, and 2025
- Where
- The issues are related to the company's operations and financial reporting in India and its subsidiaries in Singapore
- Why
- The auditors have raised concerns to ensure transparency and accuracy in the company's financial disclosures ahead of its IPO
- Company
- Imagine Marketing (BoAt's parent company)
- Auditors
- BSR & Co LLP
- Discrepancies Found
- Mismatch in financial information provided to banks and company books for FY23, FY24, and FY25
- Key Concerns
- Short-term borrowings used for long-term capital needs, material uncertainty in subsidiary liabilities, arrears in statutory dues, breach of managerial remuneration limits, and incomplete physical verification of assets
- IPO Plans
- 1,500-crore initial public offer, including a fresh issue of Rs 500 crore and an offer for sale of Rs 1,000 crore by founders and early investors