VVIP Infratech Ltd IPO

The Company, Directors, Promoters, Subsidiaries and Group Companies may be involved in certain litigation which is currently pending at various stages. Any adverse decisions in these cases against the Company, Promoter and Director may impact business and operations of the Company.

Its Registered Office is located on leased premises and there can be no assurance that this lease agreement will be renewed upon termination or that the company will be able to obtain other premise on lease on same or similar commercial terms. Any interference with its entitlements as the licensee/lessee or the cancellation of contracts with its licensors/lessors could have a negative effect on the company activities and, as a result, its overall business.

Its business is working capital intensive. If the company experience insufficient cash flows to meet required payments on its working capital requirements, there may be an adverse effect on the results of its operations and financial condition.

Failures of customers to make timely payments could necessitate increased working capital investment and/or reduced profits, thereby impacting its operational and financial performance.

A significant portion of its operational revenue is derived from a select group of top ten suppliers. The loss of business from any or all of these suppliers could negatively impact its financial performance.

Its Promoters and members of the Promoter Group will continue jointly to retain majority control over the Company even after the Issue which will allow them to determine the outcome of matters submitted to shareholders for approval.

As on date of this Draft Red Herring Prospectus, no purchase orders have been placed for the acquisition of plant and machinery, part of whose financing is intended to be achieved through the Issue.

The company has had negative cash & cash equivalent generated in the financial year 2021 in the past based on the Restated Summary Information of the Company and its may, in the future, experience similar negative cash flows.

The company is dependent on its sub-contractors to perform various portions of the contracts awarded to it. Such dependency exposes the company to certain risks such as availability and performance of its sub-contractors.

The Company has availed unsecured loan from its Directors which is repayable on demand. Any demand from the lender for repayment of such unsecured loan may affect its cash flow and financial condition.