LGT Business Connextions Ltd IPO

The company is significantly dependent on the sale of some of the services namely MICE Packages and Hotel Bookings. Its aggregate revenue from these services accounted for 99.90% and 99.93% for the period ended September 30, 2024 and for the financial year ended March 31, 2024 respectively. An inability to provide these services may adversely affect the company brand loyalty and consequently its business, results of operations, financial condition and cash flows.

The sale of the services is majorly concentrated in the southern states of India. Any adverse developments affecting its operations in such region, could have an adverse impact on the company business, financial condition, results of operations and cash flows.

The company derives a significant portion of its revenue from operations from the top 10 customers. Loss of one or more of these customers or a reduction in the amount of business the company obtain from them could have an adverse effect on its business, results of operations, financial condition and cash flows. Further, the company has entered service agreement for providing accommodation service only. Other than accommodation service the company has not entered into any agreements with any of the customers.

The company operations relies on third-party service providers, vendors, and on other travel suppliers. Any negligence in service provided by them, increase in input costs or failures to maintain strong relationships with them could disrupt the company operations which ultimately could adversely affect the quality of the service, pricing, results of operations and financial condition. Further, the company does not has long-term agreements with its travel suppliers.

The companny derives a significant portion of its revenue from operations from the corporate clients.

The company Registered and Corporate Office and other business premises through which its conduct the company business is not owned by it and the same have been taken on rent/leave & licence basis.

Its group entities are involved in certain litigations which is currently pending.

The company has incurred indebtedness which exposes it to various risks which may have an adverse effect on its business and results of operations.

The company has experienced negative cash flows in previous years based on restated statement. Any operating losses or negative cash flows in the future could adversely affect its results of operations and financial conditions.

Its operations is subject to high working capital requirements. The company inability to maintain an optimal level of working capital required for the business may impact its operations adversely.