Bvishal Oil and Energy Limited IPO

The company derives majority of its revenue from the contracts awarded through tenders. The company's business and financial condition would be materially and adversely affected if the company fails to obtain new contracts or renew the existing contracts, which are in most cases, awarded following competitive bidding process.

The company's business is primarily dependent on projects in India undertaken or awarded by Maharatna companies in Oil and Gas sector and the company derives majority of its revenues from contracts with a limited number of customers. Any adverse changes in the tender terms and government policies may lead to the company's contracts not being awarded, terminated or renegotiated, which may have a material effect on its business and results of operations.

The company's Order Book may not necessarily translate into future income in its entirety or could be delayed. Some of its current orders may be modified or delayed or not fully paid for by the company's customers, which could adversely affect its business reputation, which could have a material adverse effect on the company's business, financial condition, results of operations and future prospects.

A substantial portion of the company's revenue is derived from operations concentrated in select states within India, and any adverse developments in these regions could materially impact its business, financial condition, and results of operations.

The company has not made any alternate arrangements for meeting its capital expenditure and working capital requirements for the Objects of the offer. Further the company has not identified any alternate source of financing the "Objects of the Offer". Any shortfall in raising / meeting the same could adversely affect its growth plans, operations and financial performance.

The company has stepped into new area of service i.e. Production Enhancement Services ("PES") in mature fields which bridges upstream and mid-stream services of oil and gas sector, carry inherent risks related to the uncertainty of locating enhanced recoverable reserves.

The company operates in a highly technical sector and are exposed to the changes in the technical and other requirements of its customers. Technological changes and evolving customer requirements may require significant Capital Expenditure and affect the company's competitiveness.

The company's accounts receivable collection cycle is supported by receivables from the Maharatna companies. Receivables that become subject to disputes or arbitration may be exposed to heightened risks of delay or non-recovery.

The company is dependent on its suppliers for acquiring equipment, chemicals, consumables, stores and spares and for services provided on site by different vendors. The absence of long-term supply agreements, along with any loss, disruption or delay in supplies from these key suppliers or vendors, could materially and adversely affect the company's operations, costs, service delivery and financial condition.

The company's actual project costs may vary from the estimated cost assumptions underlying its bid. The company may be unable to meet such additional expenses and any such increase may have a material adverse effect on its results of operations, profitability, cash flows and financial condition.