Manika Plastech Limited IPO

Over 64% of the company's operating revenue came from its top five customers, though the company served between 178-200 customers during the nine months ended December 31, 2024, and the prior three fiscal years. The loss of any of its top customers, or the loss of revenue from these top customers could have a material adverse effect on the company's business, financial condition, results of operations and cash flows.

In order to cater to the requirements of its key customers and maintain our relationship with them, the company typically set up its Operating Facilities or warehouses in proximity of their manufacturing units, which exposes the company's facilities to potential fluctuations in the scale of business of its customers and related industry trends.

Out of its diversified product portfolio, approximately 67-74% of the company's revenue from operations was derived from the sale of battery casings during the nine month period ended December 31, 2024 and the preceding three Fiscals. Any significant loss of sales in our battery casings due to reduction in demand for such products or downturn in its end use industries, could have an adverse effect on its business, financial condition, results of operations and cash flows.

The company derived about 92-98% of its revenue from operations from repeat customers in the nine month period ended December 31, 2024 and the preceding three Fiscals, and any loss of, or a significant reduction in the repeat customers or revenue generated from them could adversely affect its business, results of operations, financial condition and cash flows.

Majority of its key raw material purchases, being PPCP, sourced from well-known suppliers, is not under any long term purchase agreements. Any reduction of supplies or the company's discontinuation of supplies from its top suppliers could have a material adverse effect on the company's business, financial condition, results of operations and cash flows. Any fluctuation in prices of its raw materials, may have a material adverse effect on the company's business, results of operations, prospects and financial condition.

Out of its revenue from operations from 24 states/union territories across India, about 49%-60% came from north India, particularly from Himachal Pradesh during the nine month period ended December 31, 2024 and the preceding three Fiscals. The company's Manufacturing Facilities are concentrated in the northern India, and any adverse developments affecting its operations in these regions could have an adverse impact on the company's revenue and results of operations.

While the company has maintained relationships with several key customers for over a decade, only a few of these are backed by long-term supply agreements. If these customers stop or reduce buying from the company, the company may not have any recourse against them and it may have an adverse effect on its business, financial condition, cash flows and results of operations.

The company's expansion into new product categories and an increase in the number of products offered by the company may expose the company to new challenges and additional risks.

A part of the Net Proceeds will be utilized for the repayment or prepayment of indebtedness availed of by the Company. Accordingly, the utilization of the Net Proceeds will not result in creation of any tangible assets.

The company has been expanding our product portfolio historically and have recently ventured into manufacturing of thinwall containers and painting of automotive components in the year 2024, and therefore have a limited operating history in these operations. The company may be unable to adequately address risks arising from such operations, which may impact its business and financial condition.