Supreme Power Equipment Ltd IPO

Its present promoters of the Company are first generation entrepreneur.

Its Promoters/ Directors are involved in certain legal proceedings/litigations. Any adverse decision in such proceedings may render it/them liable to penalties and may adversely affect its business and result of operations.

One of its objects of the issue includes Capital expenditure, which will take a period of twelve months for set up.

The company will be required to obtain certain licenses for set up of new factory. If the company does not receive these licenses within time, it will hamper the business operations and its may face operational disruptions.

The Pre-IPO shareholding of the promoters and promoter group is 79.37% and the post-IPO shareholding will remain 57.54%. The market's perception of their reduced involvement may impact the valuation and liquidity of their shares.

The company does not have long term contracts with its suppliers and therefore, there may be potential unavailability of raw materials in future, which may adversely affect its business operations.

The Company operation and growth is dependent upon successfully implementation its business strategies.

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

The company has obtained some of its contracts through government tenders, unavailability or any failure to secure these tenders in the future may adversely affect its business operations and financial conditions.

If its experience delays and/or defaults in client payments, the company may be unable to recover all expenditures.