Aastha Spintex Limited IPO

The company is significantly dependent on 7 Seas Impex for the company's sales outside Gujarat and exports, and any adverse development in this arrangement could materially and adversely affect its business, results of operations and financial condition.

The company's proposed utilisation of a portion of the Net Proceeds towards payment of the purchase consideration for the acquisition of Falcon Yarns Private Limited exposes the company to funding, timing, and integration risks.

The company is dependents on a limited number of suppliers for procurement of raw cotton and cotton bales, the company's principal raw material, and any disruption in supply or adverse movement in cotton prices may materially affect its business, results of operations and financial condition.

A major portion of its revenue from sale of products is dependent upon a limited number of customers, and the loss of one or more of these customers or a significant reduction in their orders could materially and adversely affect the company's business, financial condition, results of operations and cash flows.

A significant portion of its revenue is derived from cotton yarns, particularly carded, combed, and compact combed varieties, and cotton bales, and any adverse development in demand, pricing, or industry conditions could materially and adversely affect the company's business, financial condition and results of operations.

The company has filed compounding applications in respect of certain past non-compliances under the Companies Act, 2013, and may be subject to penalties or adverse regulatory action in connection therewith.

The company's acquisition-driven growth strategy, including the acquisition of Falcon Yarns Private Limited, exposes the company to risks of integration, hidden liabilities, and increased financial commitments.

The company has experienced negative cash flows in the past. Any such negative cash flows in the future could affect its business, results of operations and prospects.

The company's Debt Service Coverage Ratio (DSCR) is a key indicator of its ability to service debt obligations, and any weakening of this ratio may adversely affect the company's financial flexibility and overall business performance.

Cotton is a highly flammable commodity, and any fire, accident, or mishap at the company's facilities could result in significant property damage, business interruption, and financial loss.