1. Since its inception, the company has completed a number of acquisitions of distributors in India to expand its business and increase its customer base, and may continue to complete more acquisitions in the future. However, its may be unable to realize the anticipated benefits of past or future acquisitions successfully. Further, if the company is unable to identify expansion opportunities or experience delays or other problems in implementing our strategy of inorganic growth, its business, financial condition, results of operations, cash flows and prospects may be adversely affected.
2. The company has experienced negative cash flows from operating, investing and financing activities in the past and may continue to do so in the future.
3. The company may incur losses and its reputation may be adversely affected by the return of the company products by customers, arising from the distribution of expired, unsafe, defective, ineffective or counterfeit products, and product spoilage, breakage and damage during transportation or in storage. Its may also be subject to product liability claims.
4. Its lenders have imposed certain restrictive conditions on it under the company financing arrangements, which may adversely affect its ability to conduct its business and impair the company future growth plans.
5. Its operations are subject to high working capital requirements, and have incurred substantial indebtedness. Its inability to maintain an optimal level of working capital or financing required may impact its operations and profitability adversely.
6. The company has experienced losses in the Financial Years 2021, 2022 and 2023, and the six months ended September 30, 2022.
7. The company has pledged equity shares of certain of its Subsidiaries in favor of certain lenders and if events of default arise under the financing agreements, such lenders could invoke the relevant share pledge agreements, adversely affecting its business, results of operations, cash flows and prospects.
8. Its private label business may not be successful.
9. The Price Band, Offer Price, market capitalization to total revenue, total assets and EBITDA/EV based on the Offer Price of the Company, may not be indicative of the market price of the Company on listing or thereafter.
10. Its funding requirements and proposed deployment of the Net Proceeds are based on management estimates and have not been independently appraised by any bank or financial institution or any other independent agency, and may be subject to change based on various factors, some of which are beyond its control.