Shiva Pharmachem Limited IPO

The company derive a significant portion (more than 60%) of its revenue from operations from the company top 10 customers, with its single largest customer contributing more than 18% of its revenue from operations in Fiscal 2023. Loss of any of these customers or a reduction in purchases by any of them could adversely affect its business, results of operations and financial condition.

The company is depends on sales outside of India, which accounted for a significant portion (more than 70%) of its revenue from operations in each of the last three fiscal years. The demand of the company products outside India is subject to international market conditions and foreign regulatory risks that could adversely affect its business, results of operations and financial condition.

A significant portion (more than 40%) of its revenue from operations in each Fiscal 2023, Fiscal 2022 and Fiscal 2021 is attributable to customers operating in the agrochemicals sector. Any adverse changes in the agrochemicals sector or any other sector in which its large customers operate could adversely impact the company business, results of operations and financial condition.

The company business and profitability is substantially dependent on the availability and cost of its raw materials and the company is depends on third party suppliers, primarily outside of India, for meeting its raw material requirements which are on purchase order basis. Any disruption to the timely and adequate supply of raw materials, or volatility in the prices of raw materials may adversely impact the company business, results of operations and financial condition.

The company is depends on its R&D activities for its future success. If the company don't successfully develop new products or continue its product portfolio expansion in a timely and cost-effective manner, its business, results of operations and financial condition may be adversely affected.

The company has in the past received closure notice from Gujarat Pollution Control Board for our manufacturing facilities at Luna and Dahej SEZ in Gujarat.

The company manufacturing facilities are concentrated in Gujarat in India and Hungary in Europe. Any significant social, political, economic or seasonal disruption, natural calamities or civil disruptions in Gujarat or Hungary could have an adverse effect on its business, results of operations and financial condition.

The company is depends on third parties for the supply of utilities, such as water, gas and electricity, at its manufacturing facilities and any disruption in the supply of such utilities could adversely affect the company manufacturing operations. In addition, its utilities expenses have increased significantly since Fiscal 2021, and further increases in utilities expenses may impact its margins if the company is not able to pass these price increases to its customers.

The company is subject to certain risks consequent to its operations involving the manufacture, usage and storage of various hazardous substances.

The company may be subject to industrial unrest and increased employee costs, which may adversely affect its business and results of operations.