Tea Post Limited IPO

Majority of the company's Tea Cafés are concentrated Gujarat and Maharashtra, and the company is generates the majority of sale from its Tea Cafés in these states. Any adverse developments affecting the company's operations in these states could have an adverse impact on its revenue and results of operations.

The company's proposed new Tea Cafés may not be profitable or perform as planned and could also adversely impact performance of its existing Tea Café, which could adversely affect the company's business, results of operations and financial condition.

The company intend to expand its Tea Café network within the company's current operating regions and also enter into new geographies and therefore the company may be exposed to significant liability and could lose some or all of its investment in such new regions, as a result of which the company's business, financial condition and results of operations could be adversely affected.

A significant portion of our sales (66.11% for the nine-month period ended December 31, 2024; 65.66% in Fiscal 2024; 68.06% in Fiscal 2023; and 69.14% in Fiscal 2022) are derived from our franchise-operated Tea Cafés. The company's inability to maintain, renew or enhance relationships with its franchisees could adversely affect the company's business, results of operations and financial condition.

The company is exposed to all of the risks associated with leasing real estate, and any adverse developments which could materially affect its business, results of operations and financial condition.

The company's business prospects depend on the strength of its brand i.e. `Tea Post'. If the company is unable to maintain and enhance the value and reputation of its brand and/or counter any negative publicity, the company's business, results of operations and financial condition could be materially adversely affected.

The company makes significant capital improvements to its leased Tea Cafés, the cost of which the company may be unable to recoup.

Any adverse development in relation to its relationship with as well as performance of third-party food delivery apps, may adversely affect the company's business, results of operations and financial condition.

The success of the company's business strategy relies on its ability to establish, sustain, and effectively deliver the company's value leadership approach which includes offering quality products at competitive price points and ensuring operational efficiency to support its pricing model.

The company's supply center facilities plays a crucial role in its business operations, serving as the central hub for inventory management, supply chain coordination, and distribution to the company's Tea Cafes.