Rayzon Solar Limited IPO

The company's revenues are dependent on the demand and sale of a limited number of variants of solar PV modules. A reduction in demand for solar PV modules may adversely affect its sales, results of operations and cash flows.

Changes in the prices of raw materials due to changes in global demand or supply or other factors could adversely affect its manufacturing of solar PV modules, which may then have an adverse effect on the company's business, financial condition and results of operations.

Restrictions on, or the imposition or increase of import duties on, materials imported for its manufacturing operations may adversely affect the company's business prospects, financial condition and cash flows.

The company intend to utilise a major portion of the Net Proceeds from the Issue for investment in the company's wholly owned subsidiary, Rayzon Energy Private Limited ("REPL"), for part financing the cost of establishing the manufacturing facility with 3.50 GW installed capacity, to produce solar cells using TOPCon technology (the "Project"), at RS No. 198, 197, 199/002, 196/002, Kathvada, Mangrol, Surat, 394 405, Gujarat, India (collectively, the "Project Site"), which may be subject to the risk of unanticipated delays in implementation, cost overruns and other risks.

The company depends on certain suppliers for the supply of raw materials required for its manufacturing process, and the company's top 10 suppliers accounted for 63.56%, 66.76%, 63.09% and 57.02% of our total expenses in the nine months ended December 31, 2024 and Fiscals 2024, 2023 and 2022, respectively. Any disruptions in the supply or availability of these raw materials or fluctuations in their prices may have an adverse impact on its business operations, cash flows and financial performance.

If the company is unable to store, process and handle materials and products used in the company's operations in a proper manner, it could cause damage to its inventory, thereby resulting having an adverse effect on the company's business, results of operations and cash flows.

The company's business is dependent on certain key customers, with its top 10 customers contributing 40.29%, 47.81%, 39.82% and 36.14% of the company's revenue from operations in the nine months ended December 31, 2024 and Fiscal 2024, 2023 and 2022, respectively. The loss of revenue from any of these customers could have a material adverse effect on its business, financial condition, results of operations and cash flows.

There are various risks associated with operating in the solar module manufacturing sector. If such risks materialize, the company's business, financial condition and results of operations, among others, could be adversely affected.

Under-utilization of the company's manufacturing capacities and an inability to effectively utilize its expanded and proposed manufacturing capacities could have an adverse effect on its business, prospects, financial performance and cash flows.

The company plans to benefit from government subsidies for the Project. In the event such subsidies do not materialize or the central or state governments do not approve the entire subsidy amount or if there are any adverse changes in the availability of subsidies, it may increase the company's cost of investment, and adversely impact its customers' affordability of the company's products, thereby impacting its overall sales.