Megatherm Induction Ltd IPO

Its loan agreements requires its Corporate Promoter to pledge Equity Shares of the Company with lenders. Any breach by the Company of certain covenants under the financing agreements may entitle these lenders to exercise their rights under the financing agreements and reduce the shareholding of its Corporate Promoter, which may adversely affect the company business.

The company significantly depends upon few of the raw material suppliers for manufacturing of induction heating and melting products and transformers. Volatility in the supply and pricing of its raw materials may have an adverse effect on the company business, financial condition and results of operations.

The company may not be able to realize the amounts, partly or at all, reflected in its Order Book which may materially and adversely affect itd business, prospects, reputation, profitability, financial condition and results of operation.

Under-utilization of its manufacturing capacities and an inability to effectively utilize its existing manufacturing capacities could have an adverse effect on its business, future prospects and future financial performance.

The company is subject to strict performance requirements, including, but not limited to, quality and delivery, by its customers, and any failure by it to comply with these performance requirements may lead to the cancellation of existing and future orders, recalls or warranty and liability claims.

The company depends on the large industries for selling of its products which may effects its revenue from operation and profits.

Substantial portion of its revenues has been dependent upon few customers. The loss of any one or more of its major customer would have a material adverse effect on its business, cash flows, results of operations and financial condition.

Its Group Company have incurred losses in past and any operating losses in the future could adversely affect the results of operations and financial conditions of its group company.

Delays or defaults in client payments could affect its operations.

Product designing is very important part for its equipment for which its relies on the company team and third party consultant. Any loss or error by these employees or consultants may have an adverse effect on its equipment and operations.