Punjab Carbonic Limited IPO

The company is significantly dependent on its top 10 customers. The company deriveds 78.31%, 71.20%, 44.00% and 42.86% of its revenue from operations during the six months period ended September 30, 2025, and Fiscals 2025, 2024 and 2023, respectively, from the company's top 10 customers. Loss of such customers, a substantial reduction in purchases by such customers or its inability to attract new customers in addition to the company's existing customers will have a material adverse impact on the company's business, results of operations and financial condition.

Reliance on third-party distilleries and industrial units for sourcing CO2, which is the company's primary raw material, may adversely affect its operations and financial performance. Additionally, the Company does not own dedicated CO2 manufacturing facilities and relies on CO2 recovery units ("CRUs") installed on leased premises of third parties, which exposes us to risks associated with such arrangements.

The Company has entered into non-binding letters of intent for the proposed CRUs to be funded from the Net Proceeds along with binding lease agreements for the CRU premises, and if such arrangements do not materialize, it may affect the deployment timeline of the Net Proceeds and the implementation of its expansion plans.

Any variation in the utilization of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders' approval.

The company operates certain CO2 recovery units under asset-light or operational arrangements where the company does not own the underlying assets, which may limit its operational control.

Certain of the company's arrangements with distilleries include minimum guaranteed offtake obligations and are subject to long-term operational arrangements that may be terminated or not renewed, which may adversely affect its operations and financial condition.

The company is subject to risks associated with its products, manufacturing processes and distribution network, owing to the hazardous nature of industrial CO2. Failures to manage these operational risks may adversely affect the company's business, results of operations, cash flows and financial condition.

The company's operations relies on logistics infrastructure for the transportation of CO2 and ethanol, and any disruption in such logistics operations may adversely affect its ability to supply products to our customers.

There is a concentration of the company's sales in North India. The company's sales in North India contributed to 77.09%, 80.87%, 59.37% and 51.52% of its total sales during the six months period ended September 30, 2025 and the Fiscal 2025, Fiscal 2024, and Fiscal 2023, respectively. This regional concentration could expose the Company to economic, cultural, geopolitical and local market risks.

The company has sought exemption from disclosing a certain individual as part of the `promoter group' of the Company. There is no guarantee that SEBI will grant such exemption in a timely manner or at all.