Meta Infotech Ltd IPO

The company derives a significant portion of its revenue from operations from a few customers, with the company single largest customer contributing more than 50%, of its revenue from operations during the last three financial years. Loss of any of these customers or a reduction in business with any of them could adversely affect its business, results of operations and financial condition.

The company is heavily reliant on a few vendors/ suppliers who are the OEM for the products marketed by it, with the company single largest supplier contributing to more than 50% of its purchases during the last three financial years. Moreover, the company has not entered into long-term contracts or arrangements with these OEM vendors. Any loss of such vendors/suppliers may disrupt its operations and will have a material adverse impact on the company business and its revenue.

The company is dependent on few Industries for majority of its revenue from operations with banking industry contributing to more than 50% of the company revenue from operations during the last three financial years. Downtrend or change in regulatory framework in these Industries may result in an adverse effect on its business, revenue from operations and financial conditions.

The company has experienced negative operating cash flows in the past. Any operating losses or negative cash flows in the future could adversely affect its results of operations and financial conditions.

Some of its Group Companies and Promoter Group Entities operate in the same line of business as its, which may lead to conflict of interest.

Its import majority of the products and software licenses offered by us. Any restrictions on imports or fluctuation in foreign currencies that affect the company purchase prices could adversely affect its business, results of operations, cash flows and financial condition.

Its business is subject to evolving laws regarding privacy, data protection and other related matters. Many of these laws are subject to change and could result in claims, changes to its business practices, monetary penalties, increased cost of operations, or declines in customer growth or engagement, which may harm the company business.

The company is vulnerable to cyber-attacks, computer viruses, ransom ware and electronic break-ins which will may disrupt its operations and may have any material adverse effect on its business, financial performance and results of operations.

If the company is unable to develop or innovate its service offerings to address emerging business demands and technological trends, it may adversely impact the company business and future growth.

If its pricing structures does not accurately anticipate the cost, complexity and duration of its work, then the company contracts could result in cost and time overruns, which could make its orders unprofitable.