BVG India Limited IPO

The company is subject to several labour legislations and regulations governing welfare, benefits and training of its employees. The company's employee benefit expenses comprised 68.32%, 65.68% and 66.53% of its total expenses in Fiscals 2025, 2024 and 2023, respectively. Any significant increase in wage and training costs could adversely affect its business, financial condition and cash flows.

The nature of its business exposes the company to various operational risks, which could adversely affect its business, financial condition, results of operations and cash flows.

The company has a large workforce deployed across workplaces and client premises, consequently the company may be exposed to service-related claims and losses or employee disruptions that could have an adverse effect on its reputation, business, results of operations and financial condition.

The company does not own the "BVG" trademark and logo, and are exposed to the risk that the "BVG" brand may be affected by events beyond the company's control and that the company may be prevented from using it in the future.

There are outstanding litigation proceedings against the Company, Subsidiaries, Promoter, Directors, Key Managerial Personnel and Senior Management. Any adverse outcome in such proceedings may have an adverse impact on its reputation, business, financial condition, results of operations and cash flows.

The company generated 80.53%, 78.28% and 77.31% of the revenue of its IFM vertical from the industrial and consumer, transport infrastructure and healthcare and education sectors in Fiscals 2025, 2024 and 2023, respectively. Adverse changes in any one or more of these sectors may have a material adverse effect on its business operations and profitability.

The company is exposed to additional risks associated with engaging with government institutions and public sector undertakings including program funding and delayed payments, that could materially and adversely affect its business, results of operations, financial position and cash flows.

The company's ability to secure and execute government contracts is subject to risks associated with the tendering process, qualification criteria, and potential disqualifications, which could adversely affect its business and prospects.

The company's Promoter has provided personal guarantees for loans availed by it and has pledged certain number of Equity Shares as security for a loan availed by him.

The company has incurred indebtedness, and an inability to comply with repayment and other covenants in the company's financing agreements could adversely affect its business and financial condition. Further, the company's debt financing agreements contain restrictive covenants including requiring prior consent of its lenders for undertaking a number of corporate actions, including the Offer, which may affect the company's interest.