Mandeep Auto Industries Ltd IPO

The company requires certain approvals and licenses in the ordinary course of business and are required to comply with certain rules and regulations to operate its business, and the failure to obtain, retain and renew such approvals and licenses or comply with such rules and regulations, and the failure to obtain or retain them in a timely manner or at all may adversely affect its operations.

The land on which its existing manufacturing unit is located and the land on which the company is proposing to carry out expansion activities is an Agricultural Land.

The company has a very limited operating history as a Company, which may make it difficult for investors to evaluate its historical performance or future prospects.

The company does not have long-term agreements with most of its suppliers or customers and the loss of one or more of them or a reduction in their demand for its products could adversely affect its business, results of operations, financial condition and cash flows. Further, its inability to accurately forecast demand for the company products or manage its inventory or working capital requirements may have an adverse effect on its business, results of operations and financial condition.

The company has issued Equity Shares during the last year at a price that may be below the Issue Price.

There have been instances of incorrect filing and delays in filing of certain e-forms of the Company in compliance with the Companies Act, 2013. Consequently, its may be subject to regulatory actions and penalties for such delays which may adversely impact its business and financial condition.

Its Promoters and Directors were Promoters and Directors in Mandeep Industries Private Limited, which has been struck-off by the Registrar of Companies.

The company's business is subject to a variety of safety, health and environmental laws, labour, and workplace related laws and regulations. Any failure on its part to comply with these applicable laws and regulations could have an adverse effect on its operations and financial condition.

The Company is yet to place order for 46.23% of machinery as mentioned in its Objects of the Issue. Any delay in placing orders/ procurement of machinery, may delay its implementation schedule and may also lead to increase in price of these machineries.

Its top five clients account for more than 85.77% of the company revenue.