Vidya Wires Pvt Limited IPO

The company has been operating for over 4 decades, however, any disruption, breakdown or shutdown of its operating facilities, in future, may have a material adverse effect on the company business, financial condition, results of operations and cash flows.

The company is one of the largest manufacturers of winding and conductivity products for a range of critical industries and applications, its operations and performance are dependent on copper based products which constituted over 90% of the company revenues. Any adverse changes in the conditions affecting such products' market or any slowdown in demand of the said products can adversely impact its business, financial condition and results of operations.

While the company has longstanding relations with several of its customers and suppliers, it does not have long term agreements for supply of products or raw material with most of them. Failures to successfully continue its supplier /customer relationships could adversely affect the company.

The company is dependent on its top 5 suppliers for most of its raw material supplies. Any dispute with such supplier may lead to interruption in the company supplies of raw materials.

While its revenues are growing pan-India across 20 states/union territories, however, the company revenue is concentrated in western India. Any slowdown in these states may impact its business.

While the company supply to various end-user industries, a significant part of its revenues comes from supplies to power & transmission, general engineering and electrical sector. Any slowdown in these sectors may impact its business.

Since the company incorporation in the year 1981, the company has expanded its business, scale of operations and delivered variety of products, creating the company position in the winding and conductivity products. However, the company faces competitive pressures in its business in the future and the company inability to compete effectively would be detrimental to its business and prospects for future growth.

The Company and its Promoters are involved in a few litigations. Any adverse decision in such proceedings may render it/them liable to liabilities/penalties and may adversely affect its business, results of operations and financial condition.

The company is exposed to foreign currency fluctuation risks, particularly in relation to its import of raw materials and export of products, which may adversely affect the company results of operations, financial condition and cash flows.

Significant increases or fluctuations in prices of, or shortages of, or delay or disruption in supply of primary raw materials could affect its estimated costs, expenditures and timelines which may have a material adverse effect on its business, financial condition, results of operations and cash flows.