Shivganga Drillers Limited IPO

The company derives a significant portion of its revenue from a limited number of customers, primarily Sun Petrochemicals and a PSU engaged in the exploration and production of oil and gas, and any slowdown or loss of business from these key clients could materially and adversely affect the company's business, financial condition, cash flows and results of operations.

The company derives a substantial portion of its revenue from a single industry and a concentrated base of clients, with the company's top five customers contributing 97.98%, 99.57%, 99.77% and 99.78% of our revenue from operations for the quarter ended June 2025 and Fiscals 2025, 2024 and 2023, respectively, and our largest customer contributing 53.98%, 66.00%, 71.54% and 35.34% in the corresponding periods; any change in outsourcing trends or loss of key clients may materially and adversely affect its business, financial condition, cash flows and results of operations.

The company's business is directly affected by the demand for onshore drilling rigs and drilling services which in turn is directly related to the factors affecting E&P activities in the markets in which the company operates. Factors adversely affecting the E&P activities in these markets would adversely impact its business, revenues and financial condition.

Expiry of its existing contracts or termination of our contracts may adversely affect the company's results of operations and financial condition. Additionally, the company has not in the past but may in the future incur liquidated damages.

The Company can provide no assurance that its Order Book will be ultimately realized at the contracted amounts or at all.

The company operates in a highly technical sector and are exposed to the changes in the technical and other requirements of its clients. company'existing drilling rig fleet as well as expertise in services we provide may become obsolete and we may be required to make substantial capital investment towards acquiring technologically advanced rigs or upgrading our rig fleet and developing competencies.he company's Inability to acquire or adapt to new technology may cause its drilling methods or equipment to become less competitive and the same may have a material adverse effect on its business, results of operations, financial condition and growth strategy.

The company faces competition from Indian and foreign Oil & Gas service providers in India. The company cannot assure you whether the company will be able to compete with these players effectively and its inability to do so may impact the company's business, revenues and financial condition.

Downtime of rigs or its rigs being non-operational for an extended period of time would lead to a reduction in utilisation rates and revenue generated under contracts which could adversely affect the company's profitability and results of operations.

The company intend to utilise a portion of the Net Proceeds for funding the purchase of certain equipment, plant and machinery and the company is yet to place orders for the purchase of a majority of such equipment, plant and machinery. In the event of any delay in placing the orders, or in the event the vendors are not able to provide the equipment in a timely manner, or at all, it may result in time and cost over-runs and its business, results of operations, financial conditions and cash flows may be adversely affected.

Failures to obtain or maintain client pre-qualifications, which are critical for bidding and securing future contracts in the oil & gas industry, could adversely affect the company's business, reputation, financial condition and growth prospects.