boAt IPO: From leadership exits to financial mismatches, analysts flag concerns over Rs 1,500 crore issue
Independent analyst Jayant Mundhra questioned the timing of the resignations of co-founders Sameer Ashok Mehta and Aman Gupta from their executive roles-- just 29 days before the IPO filing. He described the move as a “calculated pre-IPO pivot” rather than a planned leadership transition.
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Ahead of its upcoming initial public offering (IPO), boAt’s financial disclosures are facing heightened scrutiny from both independent analysts and private audit firms.
After audit firm BSR & Co LLP flagged multiple discrepancies in the company’s Draft Red Herring Prospectus (DRHP), independent analyst Jayant Mundhra has raised similar concerns in the company’s IPO documents.
In a detailed LinkedIn post, Mundhra questioned the timing of the resignations of co-founders Sameer Ashok Mehta and Aman Gupta from their executive roles—just 29 days before the IPO filing. He described the move as a “calculated pre-IPO pivot” rather than a planned leadership transition.
Mundhra also highlighted the company’s sharp rise in employee attrition, calling it a red flag. The DRHP shows a 34.18% attrition rate for full-time employees, up from 27.09% in FY23 and 28.14% in FY24. “This is not normal turnover. This is a mass exodus,” he wrote, arguing the trend reflects “a completely broken internal culture.”
According to Mundhra, despite boAt having a large employee stock option pool (ESOP), it appears unable to retain talent—suggesting employees are either “miserable despite paper wealth” or lack confidence in the future value of the company’s stock.
He described boAt’s IPO filings as a “parade of glaring red flags” for potential investors.
Separately, BSR & Co LLP’s audit review pointed to multiple compliance lapses, including mismatches between quarterly submissions to banks and the company’s books for FY23, FY24, and FY25. The auditors also said short-term borrowings were used for long-term requirements of subsidiaries, a breach of standard financing practices.
Additional issues flagged included: Arrears on statutory dues; non-compliance with mandatory audit-trail requirements; inadequate backup of accounting records; improper physical verification of plant and equipment in FY23, and director remuneration exceeding limits set under the Companies Act
boAt has said it has implemented corrective actions, including reconciling mismatched financial information, upgrading accounting systems to ensure compliance, and securing shareholder approvals where needed.
