Lohia Corp Limited IPO

Significant increases or fluctuations in prices of, or shortages of, or delay or disruption in supply of primary raw materials could affect the company's estimated costs, expenditures and timelines which may have an adverse effect on its business, results of operations, financial condition and cash flows.

The company sources a significant portion of its raw materials, parts and components, from overseas suppliers. Events such as restrictions on import of raw materials, or changes in tariffs and tax rates, may adversely affect the company's business, results of operations, financial condition and cash flows.

The company heavilys dependent on the performance of the woven raffia machines market. The woven raffia machines market depends on the growth of end-use industries such as agro-textiles, building-textiles, geo-textiles and packing-textiles. Any slowdown in these end-use industries or any other adverse changes in the conditions affecting the woven raffia machines market can adversely impact its business, results of operations, financial condition and cash flows.

The company relies on the continued operations of its manufacturing facilities and any slowdown, shutdown or disruption in the company's manufacturing facilities may be caused by natural and other disasters causing unforeseen damages which may lead to disruptions in the company's business and operations, which in turn could have an adverse effect on its business, results of operations, financial condition and cash flows.

The Indian and global woven raffia machines market faces challenges such as environmental regulations, high capital costs for advanced machinery and competition. The company cannot assure you that the demand for the company's products will continue to grow in the face of these challenges, or that the company will be able to successfully navigate such challenges.

The company has experienced negative cash flows from operating activities in the past. Any negative cash flows from operating activities in the future could adversely affect the results of operations and financial condition.

Certain companies, which became the company's subsidiaries pursuant to the Scheme, have incurred losses in the three preceding Fiscals. Further, the Company incurred loss amounting to Rs. 0.09 million in Fiscal 2024, when it did not have any income, on account of legal and professional charges and miscellaneous expenses. The Company and our Subsidiaries may incur losses in future.

The company faces significant competitive pressures in the company's industry. The company's inability to compete effectively would be detrimental to its business and prospects for future growth.

The company is exposed to foreign currency fluctuation risks, particularly in relation to import of raw materials and export of products, which may adversely affect its results of operations, financial condition and cash flows.

The company's inability to handle risks associated with its export sales and the company's international operations, including the imposition of tariffs or other anti-outsourcing legislation, could negatively affect its sales to customers in foreign countries, as well as the company's operations and assets in such countries.