Indogulf Cropsci IPO

The company is subject to regular inspections and audits, and the success and wide acceptability of its products is largely dependent upon the company quality controls and standards. Any failures to comply with quality standards may adversely affect its business prospects and financial performance, including cancellation of existing and future orders which may expose it to warranty claims.

The value of its brands may be diluted if there is a change in the brand name for a known product, quality concern, negative publicity which could adversely affect its business, financial condition and results of operations.

Its historical cumulative average growth rate ("CAGR") in Revenue from Operations, EBITDA and PAT, may not be indicative of its future performance.

Under-utilization of its manufacturing capacities and an inability to effectively utilize the company expanded manufacturing capacities could have an adverse effect on its business, future prospects and future financial performance.

Its inability to collect receivables and default in payment from the company customers could result in the reduction of its profits and affect the company cash flows.

Any shortfall in the supply of its components and raw materials or an increase in the company component or raw material costs, or other input costs, may adversely affect the pricing and supply of its products and have an adverse effect on the company business, results of operations and financial condition.

The company intend to deploy a substantial portion of the Net Proceeds aggregating to Rs. 650.00 million towards funding its working capital requirements, which is based on certain assumptions. Any change in working capital requirements on account of such assumptions may materially adversely affect its results of operations and profitability.

The agrochemicals industry is capital intensive, and its may need to seek additional financing in the future to support the company growth strategies. Any failures to raise additional financing could have an adverse effect on its business, results of operations, financial condition and cash flows.

The Offer Price, price to earnings ratio and market capitalization to revenue multiple based on the Offer Price of the Company, may not be indicative of the market price of the Company on listing or thereafter.

The determination of the Price Band is based on various factors and assumptions, and the Offer Price of its Equity Shares may not be indicative of the market price of its Equity Shares after the Offer.

Its operations are dependent on research and development, and the company inability to identify and understand evolving industry trends, technological advancements, customer preferences and develop new products to meet its customers` demands may adversely affect the company business.

The company has had negative cash flows from operating activities in the past and a consequent decrease in cash and cash equivalents in the nine-month period ended December 31, 2024 and December 31, 2023, and Fiscals 2024, 2023 and 2022.

Its inability to accurately forecast demand or price for the company products and manage its inventory may adversely affect the company business, results of operations and financial condition.

Its business is subject to climatic conditions and is cyclical in nature. Seasonal variations and unfavourable local and global weather patterns may have an adverse effect on its business, results of operations and financial condition. Further, any change in Government policies towards the agriculture sector or a reduction in subsidies and incentives provided to farmers could adversely affect our agrochemicals business and result of operations.

The comany has in the past entered into related party transactions and may continue to do so in the future, which may potentially involve conflicts of interest with the equity shareholders.

The company derives a certain portion of its revenue from certain customers, and dependence on one or more such customers in future, could adversely affect its business, results of operations, financial condition and cash flows.

The company is required to obtain and/or renew certain registrations from the Central Insecticides Board and Registration Committee ("CIB&RC") for its products manufactured in India. The company also register its products in overseas jurisdictions through its International Distribution Partners to enable exports to such countries. Any failures to successfully register its products in India or in the international markets may affect the company results of operations and financial condition.

The company have certain contingent liabilities that have not been provided for in its financial statements, which if they materialise, may adversely affect its financial condition.

Its historical installed capacities and capacity utilization of the company facilities included in this Red Herring Prospectus need not be an indication of future production capacity and capacity utilization. Further, its existing capacities are underutilised.

The company will continue to depend on its distribution network for the distribution of its products. Any inability to expand or effectively manage or any disruption in the company distribution network will adversely affect its business and results of operations.

The company is required to obtain, renew or maintain statutory and regulatory permits, licenses and approvals to operate its business and the company manufacturing facilities, and any delay or inability in obtaining, renewing or maintaining such permits, licenses and approvals could result in an adverse effect on its results of operations. The company is also required to be in compliance with various laws that are applicable to it and any non-compliance may have a material adverse effect on its business, financial condition or results of operation.

Its business is dependent on the company manufacturing facilities and the company is subject to certain risks in its manufacturing process. Any unscheduled, unplanned or prolonged disruption of its manufacturing operations could materially and adversely affect the company business, financial condition and results of operations.

Its operations are labour intensive and the company manufacturing operations may be materially adversely affected by strikes, work stoppages or increased wage demands by its employees or those of the company suppliers.

Newly developed products may replace its existing products and the company research and development efforts may not yield new products, processes and solutions consistently to enable it to remain competitive.

Its traditional agrochemical products may be subject to alternative crop protection products and measures such as biotechnology products, pest resistant seeds or genetically modified crops.

There are outstanding legal proceedings involving the Company, Promoters, and Directors which may adversely affect its business, financial condition and results of operations.

Its business may expose the company to potential warranty claims, product recalls and returns, which could adversely affect its results operations, goodwill and the marketability of the company products.

An inability to effectively manage its growth and expansion may have a material adverse effect on the company business prospects and future financial performance.

Its manufacturing facilities are concentrated in the northern region of India and the inability to operate and grow the company business in other regions may have an adverse effect on its business, financial condition, results of operations, cash flows and future business prospects.

The company is dependent on its Promoters, Directors, Key Managerial Personnel, Senior Management and persons with technical expertise and the loss of or its inability to attract or retain such persons could adversely affect its business, results of operations and financial condition.

The company is dependent on third party transportation providers for the supply of raw materials and delivery of its products.

the company has incurred indebtedness, and an inability to comply with repayment and other covenants in its financing agreements could adversely affect its business, financial condition, cash flows and credit rating.

If the company experience insufficient cash flows to meet required payments on its debt and working capital requirements, the company business and results of operations could be adversely affected.

Its may become involved in claims concerning intellectual property rights, and the company could suffer significant litigation or related expenses in defending its own intellectual property rights or defending claims that we infringed the rights of others.

Resistance from farmers to crop protection chemicals and the inappropriate application of its products from farmers may adversely affect its business, financial condition and results of operations.

The company faces competition from both domestic as well as multinational corporations and its inability to compete effectively could result in the loss of customers, which could have an adverse effect on its business, results of operations, financial condition and future prospects.

Certain of its corporate filings and records are not traceable, while certain corporate records have errors. The company cannot assure that regulatory proceedings or actions will not be initiated against it in the future and we will not be subject to any penalty imposed by the competent regulatory authority in this regard.

The availability of counterfeit products passed off by others as its products, could adversely affect the company reputation, goodwill and results of operations.

The demand of its products in foreign countries is subject to international market conditions and regulatory risks that could adversely affect the company business and results of operations.

The company operates in a hazardous industry and are subject to certain business and operational risks consequent to its operations, such as, the manufacture, usage and storage of various hazardous substances.

A shortage or non-availability of essential utilities such as electricity and water could affect its manufacturing operations and have an adverse effect on its business, results of operations and financial condition.

Its insurance coverage may not adequately protect the company against all losses or the insurance cover may not be available for all the losses as per the insurance policy, which could adversely affect business, results of operations and financial condition.

A portion of its revenues and purchases are denominated in foreign currencies. As a result, the company is exposed to foreign currency exchange risks which may adversely impact its results of operations.

If the company is unable to establish and maintain an effective internal controls and compliance system, its business and reputation could be adversely affected.

The company does not own certain of the premises of its manufacturing facilities and the company Registered and Corporate Office, including its proposed Assembly Unit.

Its ability to pay dividends in the future will depends on the company earnings, financial condition, working capital requirements, capital expenditures and restrictive covenants of its financing arrangements.

Certain of its Promoters, members of Promoter Group, Directors and Key Managerial Personnel have interests in the Company in addition to their normal remuneration or benefits and reimbursement of expenses incurred.

Certain non-GAAP financial measures and certain other statistical information relating to its operations and financial performance have been included in this Red Herring Prospectus. These non-GAAP financial measures are not measures of operating performance or liquidity defined by Ind AS and may not be comparable.

After the completion of the Offer, its Promoters along with the Promoter Group will continue to collectively hold substantial shareholding in the Company.

Industry information included in this Red Herring Prospectus has been derived from an industry report commissioned by it for such purpose. There can be no assurance that such third-party statistical, financial and other industry information is either complete or accurate.

Any variation in the utilisation of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders` approval.

Its funding requirements and the proposed deployment of Net Proceeds are not appraised by any independent agency, which may affect the company business and results of operations. Further, the schedule of the implementation of the Objects for which funds are being raised in the Offer, is subject to risk of unanticipated delays in implementation and cost overruns.

The objects of the Offer include funding working capital requirements of the Company, which are based on certain assumptions and estimates and such working capital requirements may not be indicative of the actual requirements of the Company.

The Company will not receive any proceeds from the Offer for Sale.

The company intend to utilize a portion of the Net Proceeds for funding its capital expenditure requirements. The company inability to successfully implement such capacity expansion or any future capacity expansion plans could have a material adverse effect on its business, prospects, operations, prospects or financial results.

Certain of the premises of its business and manufacturing facilities are leased by the company Promoters to the Company.

The company derives a certain portion of its revenue from certain geographical locations in northern and eastern India.

Its business is significantly dependent on an extensive distribution network. Any inability to effectively manage the complexities of revenue recognition across its distribution network could have a material adverse effect on the company business, financial condition, cash flows, and results of operations.

The company has initiated certain criminal proceedings under the Negotiable Instruments Act.

Its Subsidiaries have incurred losses in the last three financial years and may continue to do so, which could have an adverse effect on its financial condition and results of operations on a consolidated basis.

Inability to meet the quality standard norms prescribed by the central and state governments in India as well as governments of other countries where we export its products, could result in the sales of the company products being banned or suspended or becoming subject to significant compliance costs, which could have a material adverse effect on its business growth and prospects, results of operations, financial condition, and cash flows.

Its products may result in crop damage and consequently, the company may be required to pay compensation to its customers.