Horizon Industrial Parks Limited IPO

A significant portion of the company's assets in our network have been acquired by the Company from its Promoters and other sellers recently (in Fiscals 2025 and 2026) and the company may undertake such acquisitions to expand its network in the future. Further, the Proforma Financial Information included in this Draft Red Herring Prospectus is presented for illustrative purposes only, to demonstrate the impact of the Acquisition Transactions as if such acquisitions had been consummated on April 1, 2022 or from the date of incorporation of such acquired entities, whichever is later, and may not accurately reflect its financial condition or results of operations.

The company incurreds losses of Rs.576.45 million, Rs.1,295.66 million, Rs.1,389.68 million and Rs.1,512.68 million, on a restated consolidated basis and Rs.597.12 million, Rs.2,337.03 million, Rs.2,545.42 million and Rs.2,937.18 million, on a proforma basis, in the three months ended June 30, 2025 and Fiscals 2025, 2024, 2023, respectively and some of the company's Material Subsidiaries incurred losses in the past, based on their respective standalone financial information primarily due to high finance costs and depreciation and amortization expenses. There can be no assurance that the company will achieve or maintain profitability in the future.

The company's revenues are significantly dependent on the company's top 10 customers (identified based on their proforma revenue contribution in Fiscal 2025). These customers accounted for 41.52%, 44.44%, 53.97% and 53.20% of the company's proforma revenue from operations in the three months ended June 30, 2025 and Fiscals 2025, 2024 and 2023, respectively. Loss of any of these customers or a significant reduction in their lease commitments could adversely affect its business, results of operations, financial condition and prospects.

A significant portion of the company's revenue is derived from its assets situated in the cities of Delhi-NCR, Chennai, Bangalore and Pune, which collectively contributed 79.86%, 79.95%, 87.65% and 85.57% of the company's proforma revenue from operations for the three months period ended June 30, 2025 and Fiscals 2025, 2024 and 2023, respectively. Any adverse developments affecting the locations of the company's assets in these cities could have an adverse effect on the company's business, results of operations, financial condition and prospects.

The title and development rights or other interests over land where the company's assets are located, may be subject to legal uncertainties and defects, which may interfere with its ownership of the company's assets and result in the company incurring additional costs to remedy and cure such defects.

The company is exposed to the risks pertaining to land scarcity and the limited supply of land, increasing competition and applicable regulations, which may adversely affect its business, results of operations and financial condition.

The company relies on independent contractors for the construction of our assets and any failures on their part to perform their obligations could adversely affect its business, results of operations, financial condition and prospects.

The company's Development Network (which constitutes 53.91% of our Total Network) is subject to various risks and uncertainties, including construction delays and increasing construction costs, which could lead to time and cost overruns, and adversely affect its business, financial condition, operations and cash flows.

A portion of the Net Proceeds are proposed to be utilized for repayment or pre-payment of certain borrowings availed by the company's Subsidiaries from State Bank of India and Axis Bank Limited, which is an associate of SBI Capital Markets Limited and Axis Capital Limited, respectively, two of the BRLMs.

The company requires substantial funds for meeting its capital expenditure requirements. The company may not be able to secure funding for such capital expenditure in a timely manner or at all which may adversely impact its growth prospects and overall financial performance.