Gujarat Victory Forgings Limited IPO

The company's ability to source adequate quality of copper scrap and other raw materials, including through imports, is critical to its operations, and any disruption in procurement, quality or import of such raw materials may adversely affect the company's business, financial condition and results of operations

The company's operations and financial performance are concentrated and significantly dependent on the sale of copper cathodes, which contributed to 44.76%, 49.34%, 56.30% and 44.29% of its revenue from operations during the six months period ended September 30, 2025, and the Financial Years ended March 31, 2025, March 31, 2024, and March 31, 2023. Any adverse conditions affecting the market of the said product can negatively impact its business, financial condition and results of operations.

A significant portion of the company's revenue during the six months period ended September 30, 2025, and as at Financial Year ended March 31, 2025, March 31, 2024, and March 31, 2023, is derived from its repeat and top 10 customers. Any decrease in revenues or loss of business from such customers may adversely affect the company's business, financial condition, cash flows and results of operations.

While the company has longstanding relationships with several of its suppliers, the company does not have formal agreements for the procurement of raw materials, and any failures to maintain such relationships could adversely affect its business, financial condition and results of operations.

While the company's revenues are growing pan-India across 15 states/union territories, however, the company's revenue concentration is in western India. Any slowdown in demand of its products in these states/union territories may impact the company's business, financial condition and results of operations.

The company's dependence on imported copper scrap, which is subject to stringent environmental and hazardous waste regulations, exposes the company to regulatory risks that may adversely affect its raw material procurement and operations.

The company has experienced negative cash flows in the past and may continue to do so in the future and the same may adversely affect its cash flow requirements, which in turn may adversely affect the company's ability to operate its business and implement the company's growth plans, thereby affecting its financial condition.

The company's operations are largely dependent on confirmed customer orders, and any fluctuations in demand or inaccuracies in forecasting may adversely affect its inventory levels, operations, financial condition and cash flows.

There have been certain instances of non-compliances and delay in filings with respect to certain regulatory filings under the Companies Act, 2013 by the Company in the past. Further, the company may be subject to regulatory actions and penalties for any such past or future non-compliance or delays, and the company's business, financial condition and reputation may be adversely affected

The company's operations involve melting of copper scrap in the furnaces which can be extremely dangerous and any accident, could cause serious injury to people or property which may adversely affect its production schedules, costs, sales and ability to meet customer demand.