Steel Infra Solutions Company Limited IPO

The company's business is dependent and will continue to depend on its Manufacturing Units, and the company is subject to certain risks in the company's manufacturing process. Any slowdown or shutdown in the company's manufacturing operations that could interfere with its operations could have an adverse effect on the company's business, results of operations, cash flows and financial condition.

The company derives all of the company's revenues from the design, engineering, manufacture and erection of fabricated steel structures. Loss or decline in the demand of fabricated steel structures due to adverse changes in demand by the company's customers or the end customers of its EPC and PMC customers and/or any unfavourable change in the construction market and/or unfavourable change in government policies could have a material adverse effect on the company's business, results of operations, cash flows and financial condition.

The company derives a significant portion (more than 73% in Fiscal 2025) of the company's revenue from operations from its top ten customers, with the company's single largest customer contributing more than 20% of the company's revenue from operations in Fiscal 2025. The company also derives a significant portion (more than 58% in Fiscal 2025) of the company's revenue from operations from repeat orders. Loss of any of these customers or a reduction in purchases or repeat orders by any of them could adversely affect its business, results of operations and financial condition.

The company is measured against high quality standards and stringent performance requirements by the company's customers. Any failures by the company to comply with these standards or performance requirements may lead to the cancellation of existing and future orders, recalls, liquidated damages, invocation of performance bank guarantees or warranty and indemnity or liability claims, which could adversely affect its reputation, business, results from operations, cash flows and financial condition.

The company's business and profitability is substantially dependent on the availability and cost of steel and its other raw materials and the company is dependent on third party suppliers for meeting its steel and raw material requirements which are on purchase order basis. Any disruption to the timely and adequate supply of steel or other raw materials, or volatility in steel prices or prices of other raw materials may adversely impact the company's business, results of operations, cash flows and financial condition. Further, trade restrictions, sanctions or higher tariffs may significantly impact our sourcing decisions and may lead to increased cost of purchase and shortages of raw materials.

The contracts in the company's Order Book may be adjusted, cancelled or suspended by its customers and, therefore the company's Order Book is not necessarily indicative of its future revenues or profit.

The company may face competition in our business from both domestic as well as international companies and its inability to compete effectively may adversely affect the company's business, cash flows, results of operations, financial condition, and may also lead to a lower market share or reduced operating margins.

Bhilai Unit-2 and Bhilai Unit-4 are not owned by the Company, and material approvals for these units have been obtained in the name of third parties. Any disruption in the manufacturing agreements may adversely affect its business, results of operations and financial condition.

The company's fabricated steel projects are exposed to various risks and other uncertainties, and its risk management and project selection framework may be inadequate, which may adversely affect the company's business, results of operations and financial condition.

The company's expansion of its existing manufacturing unit in Vadodara existing and the company's planned new manufacturing unit in Vadodara are subject to the risk of unanticipated delays in implementation and cost overruns. If the company is unable to implement the expansion plans at the planned cost, it could materially and adversely impact its business, results of operations and financial condition.