Arisinfra Solutions Ltd IPO

The company derives a significant portion of its revenues from the sale of aggregates, ready-mix-concrete ("RMC"), and steel, which represented 31.19%, 21.12% and 16.13%, respectively, of its revenue from operations for Fiscal 2024. Any decline in the demand of these construction materials would have an adverse effect on its business, financial condition, results of operations and cash flows.

The company derives a substantial portion of its revenues from the states of Maharashtra, Karnataka and Tamil Nadu, which accounted for 81.05%, 85.04% and 92.15% of its revenue from operations for Fiscal 2024, Fiscal 2023 and Fiscal 2022, respectively. Consequently, any unfavourable developments in these states could adversely affect its business, results of operations, financial condition and cash flows.

The company depends on certain key customers for a significant portion of its revenues. Its top 10 customers contributed 45.24%, 39.07% and 47.19% of its revenue from operations for Fiscal 2024, Fiscal 2023 and Fiscal 2022, respectively. The company does not execute long-term agreements with its customers and the company inability to procure new orders on a regular basis or at all or any decrease in revenues from any of its key customers or any loss of any of these customers or its inability to diversify the company customer base could have an adverse effect on its business, results of operations, financial condition and cash flows.

The company has incurred losses in the past and its may continue to incur losses in the future.

Delays or defaults in payment by the customers or a reduction in credit periods granted to us by the vendors could adversely affect our business, results of operations, financial condition and cash flows.

We have substantial working capital requirements and may require additional financing in the future. A failure in obtaining such additional financing or on terms favourable to us could have an adverse effect on our business, results of operations, financial condition and cash flows.

We engage third-party manufacturers to manufacture certain construction materials that we sell to our customers. The sale of third party manufactured construction materials contributed to 17.57%, 2.47% and nil of the total revenue from operations for Fiscal 2024, Fiscal 2023 and Fiscal 2022, respectively. If such manufacturers choose not to manufacture construction materials for us or fail to maintain quality standards, our business, results of operations and financial condition could be adversely affected.

Our technology failures and resulting interruptions in the availability of our offerings could adversely affect our business, financial condition, cash flows and results of operations

We have a limited operating history and our historical performance may not be indicative of our future growth or financial results.

Security breaches and attacks against our systems, and any potentially resulting breach or failure to otherwise protect confidential information, could adversely impact our business and reputation.