Mehul Telecom Ltd IPO

The company's operations and revenues are limited to and concentrated in the geographical region of the State of Gujarat. In the State of Gujarat also its business revenue is generated mainly from two districts viz., Rajkot and Morbi. Any adverse development affecting the company's operations in this region or any saturation could have an adverse impact on its business, financial condition and results of operations.

The company a limited operating history and may be subject to risks inherent in early-stage companies, which may make the company's difficult for investors to evaluate its business and prospects.

A substantial portion of its revenues has been dependent upon a limited number of customers. Loss of any of the top customers or any reduction of business from any one of them may affect the financial performance of the Company.

The company's Registered Office and other premises from where the company operates are on lease basis and not owned by the company.

The company requires certain approvals and licenses in the ordinary course of business, some of the approvals are required to be transferred in the name of `Mehul Telecom Limited', the company is yet to apply for some of the said registrations and the failures to successfully obtain/renew such registrations would adversely affect its operations, results of operations and financial condition.

The company's business is a high volume-low margin business.

Competition from online retailers who can offer products at competitive prices and are also able to offer a wide range of products may adversely affect the company's business and the company's financial condition, results of operations and cash flows.

The Mobile and Accessories retailing business has a low entry barrier. Increase in competitors, including new entrants who can capture market share rapidly could have an adverse impact on the company's business, financial condition and results of operations.

Over dependence of its business on franchise owned and franchise operated model (FOFO) rather than company operated and company owned (COCO) model.

The company has a limited product line focusing exclusively on the distribution of telecom products including mobile devices, accessories and other related gadgets exposing the company to significant risks due to lack of diversification.