Madhur Iron AND Steel India Limited IPO

The company's Manufacturing Facility and Registered Office are located in Bhilai, Chhattisgarh and a significant portion of its revenue amounting to Rs.13901.41 lakhs, Rs.22739.49 lakhs, Rs.15924.30 lakhs and Rs.15105.11 lakh constituting 72%, 66.97%, 66.56% and 78.33% of the company's total revenue from operations for the Six Months Period ended September 30, 2025, Fiscal 2025, Fiscal 2024 and Fiscal 2023 respectively is also derived from this state. Further, our procurement from Chhattisgarh amounted to ?9796.46 lakhs, Rs.21639.36 lakh, Rs.20770.50 lakhs and Rs.18735.00 lakhs constituting 58.99%, 62.28%, 84.49% and 91.57% of the company's total purchases for the Six Months Period ended September 30, 2025, Fiscal 2025, Fiscal 2024 and Fiscal 2023. As a result, the company is exposed to geographic concentration risks that may adversely affect its operations, financial condition, and results of operations.

A major portion of its revenue from operations is dependent upon a limited number of customers, the company's revenue from its top ten customers is Rs.14955.19 lakhs, Rs.19177.18 lakhs, Rs.13729.73 lakhs and Rs.9788.55 lakhs constituting 77.79%, 56.34%, 57.36% and 50.73% of the company's overall revenue from operations for the Six Months Period ended September 30, 2025, Fiscal 2025, Fiscal 2024 and Fiscal 2023 respectively. Loss of any of these customers or loss of revenue from any of these customers could have a material adverse effect on its business, financial condition, results of operations and cash flows.

The company depends on a certain limited set of suppliers for the supply of primary raw materials. the company's procurement of raw materials from its top ten suppliers is Rs.13226.19 lakhs, Rs.25876.23 lakhs, Rs.14057.36 lakhs and Rs.11864.71 lakhs constituting 79.64%, 74.47%, 57.18% and 57.18% of the company's overall procurement for the Six Months Period ended September 30, 2025, Fiscal 2025, Fiscal 2024 and Fiscal 2023 respectively. Any loss of suppliers or interruptions in the timely delivery of supplies and services could have an adverse impact on its business, financial condition, cash flows and results of operations.

The company has not received land conversion approvals for the land acquired for the Proposed Project and have not yet placed orders / made payment in relation to the Proposed Project. Any delay in placing the orders or inability of the vendors to provide the plant and machineries or complete the civil and related works etc. in a timely manner, or at all, the same may result in time and cost over-runs.

The company's manufacturing business is dependent on the availability and pricing of billets and blooms as a key raw material and any fluctuations in supply or cost, and the working capital required to procure and store the same, may adversely affect its manufacturing operations, profitability and cash flows.

The company is subjects to stringent quality requirements, and any failures by the company or the company's suppliers to comply with applicable standards may result in cancellation of existing and future orders, product recalls, warranty claims, product liability, litigation, and other disputes or claims, which may adversely affect its brand image, and customer relationships, and may have a material adverse effect on the company's business, results of operations, and financial condition.

Capital expenditure to the tune of ?7,580 lakhs required towards the "Proposed Project" at Boria, Bemetara, Chhattisgarh would be funded out of the Net Proceeds of the Issue. If the company is unable to successfully implement its Proposed Project, our results of operations and financial condition could be adversely affected.

There are outstanding litigations involving the Company, Promoter, Directors, KMPs and SMPs. An adverse outcome in any of these proceedings may affect its reputation and standing and impact the company's future business and could have a material adverse effect on its business, financial condition, cash flows and results of operations.

The company has has experienced negative cash flows in the past, and sustained or significant negative cash flows may adversely affect its business, financial condition and growth prospects.

The company's proposed acquisition of land where Proposed Unit I is located is subject to receipt of requisite governmental approvals and completion of subsequent transfer formalities, and any delay or failure may adversely affect its operations and financial performance.