Shivalaya Construction Limited IPO

The company's business is primarily dependent on contracts awarded by governmental authorities and other entities owned and controlled by the Government of India ("GoI") or state governments (collectively "Government Entities") and the company derived 95.80%, 97.37% and 96.78% of its Revenue from Operations for Fiscals 2025, 2024 and 2023, respectively, from contracts with Government Entities. Any adverse changes in the policies of the central or state or local authorities and market conditions, including political and economic events such as elections, may lead to the company's contracts being foreclosed, terminated, restructured or renegotiated and thereby lead to a decline in its revenues, which may have a material effect on the company's business and results of operations.

A majority of its Revenue from Operations is from the company's top 10 customers which accounted for 95.35%, 97.36% and 96.36% of its Revenue from Operations in Fiscals 2025, 2024 and 2023. Loss of any such customers or reduction in business or demand from such customers will have a significant adverse impact on the company's business and results of operation.

The company's revenue from execution of HAM Projects constituted approximately 83.63%, 82.97% and 62.32% of its Revenue from Operations for the Fiscals 2025, 2024 and 2023, respectively. The company's business and its financial condition would be materially and adversely affected if the company fails to obtain new HAM Projects.

All projects the company operates have been awarded primarily through the competitive bidding process. The company's bids may not always be accepted. The company may not be able to qualify for, compete and win projects or identify and acquire new projects, which could adversely affect its business and results of operations.

The company's Order Book may not be representative of its future results and the company's actual income may be significantly less than the estimates reflected in its Order Book, which could adversely affect the company's business, financial condition, results of operations and prospects.

Majority of projects in the company's Order Book are concentrated in Jharkhand, Kerala, Uttar Pradesh, Maharashtra and Meghalaya contributing 24.61%, 23.52%, 22.38%, 9.91% and 9.08%, respectively, and collectively 89.50%, to its Order Book as on July 31, 2025. Consequently, the company is exposed to risks emanating from economic, regulatory and other changes in these locations which the company may not be able to successfully manage and may adversely affect its business, financial condition, results of operations, and prospects.

The company's projects are exposed to various implementation and other risks and uncertainties which result in delays in the completion of construction of current and future projects and could lead to termination of its contracts or cost overruns or claims for damages which may adversely affect the company's cash flow, business, financial condition, results of operations, and prospects.

The company's business largely comprises Road Projects in India undertaken or awarded by the Governmental Entities. The loss of any of its contracts, particularly of the company's Road Projects, may have a material and adverse effect on its business and financial results.

The company is seeking to diversify into new business segments such as railways, solar and power transmission, but there can be no assurance that such initiatives will be successful and will not adversely affect its business, financial condition and results of operations.

The company's actual cost in executing its projects may vary substantially from the assumptions underlying the company's bid. The company may be unable to recover all or some of the additional expenses, which may have an adverse effect on its business, financial condition, results of operations, and prospects.