Integrated cotton spinning infrastructure with modern technologies to support our product portfolio.
Long standing relationship with key customers.
Strategically located manufacturing facility with adequate storage facility and scope for future expansion.
Renewable Energy Infrastructure Enabling Sustainable and Cost-Efficient Manufacturing.
Strong financials and operating metrics.
Experienced Promoters and Management Team
One of the Objects of the Issue is to utilise a portion of the Issue Proceeds towards part payment of the purchase consideration for the acquisition of equity shares of Falcon Yarns Private Limited ("Falcon" or the "Target Company") by the Company, the Company proposes to utilise Rs.11,151.00 lakhs from the Issue Proceeds towards part payment of the purchase consideration for acquisition of 33,453,508 equity shares of Falcon at an acquisition price of Rs.33.33 per equity share which is higher than the buyback price of Rs.14.46 per share undertaken by Falcon on September 13, 2024.
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 has, in the past, not complied with the requirements of Section 138 of the Companies Act, 2013 relating to the appointment of an internal auditor, which may expose it to regulatory actions and could adversely affect its business, financial condition and reputation.
The company has significantly dependent on 7 Seas Impex for majority of the company 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 continued operations are dependent on a single Manufacturing Facility and are critical to the company business,
and any disruption could materially and adversely affect its results of operations, cash flows, and financial condition.
The company has entered into, and may in the future continue to enter into, transactions with related parties, which may potentially involve conflicts of interest.
Any downgrade of the company credit ratings of outstanding borrowings could adversely affect its business.
The valuation report obtained for the acquisition of Falcon Yarns Private Limited is based on certain assumptions and methods adopted by the valuer which may not adequately indicate its actual or future value.
The company has issued equity shares during the one year preceding the date of the Draft Red Herring Prospectus at a price that may be lower than the Offer Price.
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.
