TIPCO Engineering India Ltd IPO

Our business operations rely significantly on the continuous and timely supply of raw materials from top one supplier, top 5 and top 10 suppliers, Also, we do not have continuing and exclusive supply agreement with them. Our purchases of stock-in-trade from top 10 suppliers are 59.93%, 56.66% and 67.83% in fiscal years 2025, 2024 and 2023 respectively, accordingly, this exposes us to a concentration of purchases from top 10 suppliers and also, any interruptions or discontinuation of same will adversely impact our overall performance and profitability.

We generate our majority of the sales from domestic market of which major portion of sales from our operations is generated from certain geographical regions especially, Uttar Pradesh, Rajasthan and Haryana which totally contributed 73.03%, 81.86% and 65.46% for fiscals 2025, 2024 and 2023 respectively and minority portion of sales is from international market. Any adverse developments affecting our operations in these regions could have an adverse impact on our revenue and results of operations.

We have entered into and may enter into related party transactions in the future, however, there can be no assurance that such transactions, individually or taken together, will not have an adverse effect on our business, prospects, results of operations and financial condition.

The company has certain outstanding litigation against us, an adverse outcome of which may adversely affect its business, reputation and results of operations.

Our Registered Office and Manufacturing Unit both are situated at the same place and is owned by one of our Promoters, Mr. Ritesh Sharma and one of the Promoter Group Entities, M/s. RGVY Enterprises (partnership firm of Mr. Ritesh Sharma and Ms. Sonia Sharma). In any event, the arrangements entered into are not on commercially acceptable/favourable terms for our Company or there is a disruption of our rights since there being the Interest of our promoters directly or indirectly or termination of the agreements with our promoters or promoter group entity, our Business, Financial Condition and Results of Operations and Cash Flows could be adversely affected.

The restated financial statements have been provided by peer reviewed chartered accountants who is not statutory auditor of our Company.

The company is dependent on the performance of industries viz. Paint and Coating, Constructions and Infrastructure and metal which totally contributed 88.79%, %, 88.47 and 70.33% of its revenue from operations in fiscals 2025, 2024 and 2023 respectively in which the company's customers operate and fluctuations in the performance of such industries may result in a loss of such customers, a decrease in the volume of work the company undertakes or the price at which the company offer its services.

Our existing registered office and manufacturing unit are concentrated in a single region i.e., Sonepat in the state of Haryana and therefore, any localized social unrest, natural disaster or breakdown of services or any other natural disaster in and around Haryana and the inability to operate and grow our business in this particular region may have an adverse effect on our business, financial condition, results of operations, cash flows and future business prospects.

Our Order Book may not be representative of our future results. Orders included in our Book may be delayed, cancelled or not fully paid for by our customers, which could materially harm our cash flow position, revenues and earnings.

In the past and in the current scenario, our Company sources the raw materials from domestic market and majority of the domestic purchases are from Haryana, Uttar Pradesh and Delhi and very less purchases are from international market i.e. China. Any adverse developments affecting our procurement from this state or such geographical concentration in the domestic purchases, could have an adverse impact on our revenue and results of operations.