Sihora Industries Ltd IPO

The company's manufacturing and operational facilities are concentrated in a single geographical region, and any adverse developments in this region could materially impact its business operations and financial performance.

The company has only one Manufacturing facility, continued operation of its manufacturing facility is critical to the company's business and any disruption in the operation of its manufacturing facility may have a material adverse effect on the company's business, results of operations and financial condition.

A significant portion of its revenue is derived from a limited number of customers. The company's top five customers contributed 49.68%, 57%, 56.82%, 48.57%, and 43.93% of its total revenue during the period April 1, 2025 to August 31, 2025, Fiscal 2025, the period October 18, 2023 to March 31, 2024, the period April 1, 2023 to October 17, 2023, and Fiscal 2023, respectively, based on our Restated Financial Statements. Any loss of such major customers or a significant reduction in their demand could materially and adversely affect the company's business, financial condition, cash flows, and results of operations.

The company relies on its top five suppliers for a significant portion of the company's revenues and raw material sourcing, and lack of long-term agreements with them may adversely affect its business.

The company's operations are conducted from premises not owned by the company, and any disruption in the company's current arrangements may affect its business.

The company's manufacturing operations are subject to risks including equipment failures, accidents, and natural disasters which could disrupt production.

Any failures on the company's part to effectively manage its inventory may result in an adverse effect on the company's business, revenue from manufacturing operations and financial condition.

Any failures in the company's quality control processes may adversely affect its business, results of operations and financial condition.

The Company has negative cash flows from its operating, investing and financing activities in the past years, details of which are given below. Sustained negative cash flow could impact on its growth and business.

Fluctuations, customer purchasing patterns, and broader macroeconomic trends, which may impact its revenue and capacity utilization.