Rajputana Stain. IPO

The company derives a significant portion of the company`s revenue from operations from its top 10 customers, and the company does not have long-term contracts with all these customers. If one or more such customers choose not to source their requirements from the company or to terminate its contracts or purchase orders, the company`s business, cash flows, financial condition and results of operations may be adversely affected.

The Company, Promoters, Directors, KMPs and SMPs are parties to certain legal proceedings. Litigations involving the Company aggregate amounting to Rs.12,861.77 Lakhs which is 72.81% of the company`s net worth Any adverse decision in such proceedings may have a material adverse effect on the company`s business, results of operations and financial condition.

The company`s Manufacturing Facility and Proposed Facility is located in Gujarat and therefore its operation is highly vulnerable to regional conditions and economic downturns in the region.

The company relies substantially on the company`s top 10 suppliers of the raw materials and work-in-progress goods used in the company`s manufacturing processes. Any shortages, delay or disruption may have a material adverse effect on the company`s business, financial condition, results of operations and cash flows.

The company derives the majority of sales from the domestic market and a significant portion of the company`s domestic sales are derived from the states of Maharashtra, Gujarat & Uttar Pradesh. Any adverse developments in this market could adversely affect its business.

The company has contingent liabilities amounting to Rs.12,082.46 Lakhs which is 68.40% of the company`s net worth and the company`s financial condition could be adversely affected if any of these contingent liabilities materializes.

The Offer Price of the company`s Equity Shares and price-to-earnings(P/E), may not reflect the trading price of the company`s Equity Shares upon listing on the Stock Exchanges subsequent to the Offer and, as a result, you may lose a significant part or all of your investment.

The company`s Equity Shares have, in the past, been allotted and transferred at prices lower than earlier valuations, which may impact investor perception regarding its equity capital history.

The company has in the past, issued Equity Shares at significantly lower prices compared to earlier issue prices, which may raise concerns about historical valuation practices and affect investor perception.

Changes in market demand for the company`s existing stainless-steel products, as well as downturns in end-use industries, may adversely affect its business, results of operations, and financial condition.

The company`s proposed stainless-steel seamless pipe products may not achieve market acceptance, which may adversely affect its return on investment and future growth.

Defaults or rescheduling/ restructuring of borrowings with financial institutions/ banks.

Adverse business cycles, financial stress, or the inability of the Company to effectively manage business volumes, customer relationships, or supplier networks may materially and adversely affect its financial condition, results of operations, and business prospects.

A portion of the company`s revenue is denominated in foreign currencies which are unhedged and going forward, the company`s intend to increase its export sales. As a result, the company is exposed to foreign currency exchange risks which may adversely impact its results of operations.

In the past one of the company`s Independent Directors was subject to disqualification and default.

The Company is yet to place orders for the equipment, plant and machinery for the Proposed Facility. Any delay in placing orders or procurement of such equipment, plant and machinery may delay the schedule of implementation and possibly increase the cost of commencing operations.

The company`s business is a high volume-low margin business. Any disruption in the company`s turnover or failures to regularly grow the same may have a material adverse effect on the company`s business, results of operations and financial condition.

There are certain instances of delays in payment of statutory dues. Any delay in payment of statutory dues or non-payment of statutory dues in dispute may attract financial penalties from the respective government authorities, which may have an adverse impact on the company`s financial condition and cash flows.

The company may faces several risks associated with the construction of the building of the Proposed Facility, which could hamper the company`s growth, prospects, cash flows and business and financial condition.

The company may faces risks relating to the Proposed Facility, such as cost overruns, delays in implementation, receipt of statutory approvals, and other execution challenges in setting up the Proposed Facility, which may adversely affect its business, results of operations, financial condition and growth prospects

The company may fails to protect its intellectual property, including the company`s designs and are susceptible to litigation for infringement of intellectual property rights in relation to such designs. This could materially and adversely affect its reputation, results of operations and financial condition.

The company`s existing manufacturing facility is critical to the company`s business operations. The unexpected shutdown or slowdown of operations at its operational manufacturing facility could have a material adverse effect on the company`s business, results of operations, profitability and margins, cash flows and financial condition.

A significant portion of the company`s revenue is derived from transactions with related parties, and any reduction or discontinuation of such transactions could adversely affect its business and results of operations.

Disruption in the company`s relationships with third party traders, changes in their business practices, and their failures to meet payment schedules could adversely affect its business, operating cash flows and financial condition.

The company is highlys dependent on the company`s skilled personnel for the company`s day-to-day operations. The loss of or the company`s inability to attract or retain such persons will have a material adverse effect on the company`s business performance.

Under-utilization of the company`s production capacities could have an adverse effect on the company`s business, future prospects and future financial performance.

The Company`s revenue and procurement are linked to related party transactions. There has been increase in such transactions during the six-month period ended September 30, 2025, as compared to the previous financial years. Any adverse development, including changes in relationship terms, pricing or regulatory restrictions, may affect its financial performance.

In the past, the Company has entered into related party transactions, including recurring rent payments during the Fiscal 2024 and 2023, pursuant to a rental arrangement in respect of premises used by the Company, which may involve potential conflicts of interest

The company`s inability to collect receivables from its customers or default on payment by them could result in a reduction in the company`s profits and affect its cash flow.

The company has had negative cash flows from investing and financing activities for the six-month period ended September 30, 2025, Fiscals 2025, 2024 and 2023, and may, in the future, experience similar negative cash flows.

The company enters certain related party transactions in the ordinary course of the company`s business and the company cannot assure you that such transactions will not adversely affect its business, results of operations, profitability and margins, cash flow and financial condition.

The company operates in a hazardous industry and are subject to certain business and operational risks consequent to the company`s operations, such as the manufacturing, usage and storage of hazardous substances which may adversely affect its business, results of operations and financial condition.

There may have been certain instances of irregularities, discrepancies and non-compliance with respect to certain corporate actions taken by the Company in the past. Consequently, the company may be subject to regulatory actions and penalties.

The company`s inability to effectively manage its growth or to successfully implement the company`s business plan and growth strategy could have an adverse effect on the company`s business, results of operations, financial condition and cash flows.

The company is subject to strict quality requirements and any product defect issues or failures by the company or the company`s raw material suppliers to comply with quality standards may lead to the cancellation of existing and future orders, recalls and exposure to potential product liability claims.

In addition to the company`s Manufacturing Facilities, the company enters arrangements with third-party manufacturers on a job work basis and therefor the company is subject to risks associated with the third-party manufacturing processes.

The company operates in a competitive business environment. Competition from existing players and new entrants and consequent pricing pressures could have a material adverse effect on the company`s business growth and prospects, financial condition and results of operations.

Any disruption or shortage of essential utilities could disrupt its manufacturing operations and increase its production costs, which could adversely affect the company`s results of operations.

The company`s engage contract labour to carry out certain of the company`s operations and the company may be held responsible for paying the wages of such workers, if the independent contractors through whom such workers are hired default on their obligations, and such obligations could have an adverse effect on the company`s results of operations, cash flows and financial condition.

The production of steel products is capital intensive, with long gestation periods.

As a business strategy, the Company intends to expand its international footprints, which may be subject to risks and challenges associated with international market.

The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the Offer. Any shortfall in raising / meeting the same could adversely affect the company`s growth plans, operations and financial performance.

Errors in forecasting demand for the company`s products could result in failures to manage its inventory and misallocation of production capacity, which in turn, could lead to decreased efficiency, increased cost and lost opportunity which could have an adverse effect on the company`s business, results of operations, profitability and margins, cash flows and financial condition.

The company does not own some of the Properties which the company presently use for the company`s business purpose.

The company is dependent on third-party transportation providers for the supply of materials for the company`s manufacturing process and delivery of the company`s finished products.

Failures to manage its inventory could have an adverse effect on the company`s net sales, profitability, cash flow and liquidity

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

The company requires certain approvals and licenses in the ordinary course of business and are required to comply with certain rules and regulations to operate its business, any failures to obtain, retain and renew such approvals and licences or comply with such rules and regulations may adversely affect its operations.

Changing laws, rules and regulations and legal uncertainties, including the withdrawal of certain benefits or adverse application of tax laws, may adversely affect its business, prospects, results of operations and cash flows.

The company`s ability to access capital at attractive costs depends on the company`s credit ratings. Non-availability of credit ratings or a poor rating may restrict its access to capital and thereby adversely affect the company`s business, financial conditions, cash flows and results of operations

Failures to maintain the confidentiality of the company`s technical knowledge could undermine its competitive advantage.

The steel industry is cyclical in nature. Pricing in the steel industry is subject to market demand, volatility and economic conditions.

The company is subject to restrictive covenants under the company`s financing agreements that could limit its flexibility in managing the company`s business or to use cash or other assets. Any defaults could lead to acceleration of the company`s repayment obligations, cross defaults under other financing agreements, termination of one or more of its financing agreements or force the company to sell the company`s assets, which may adversely affect its cash flows, business, results of operations and financial condition.

The availability of counterfeit products, such as products passed off as the company`s products by others, and any failures to protect or enforce its rights to own or use trademarks and brand name and identity could have an adverse effect on the company`s business and competitive position.

The company has availed unsecured loans from one of the company`s Promoters that are recallable, at any time.

Failures or disruption of the company`s IT systems may unfavourably affect its business and operations.

The company`s Promoters have provided personal guarantees as security for certain facilities availed by the Company. If these guarantees are revoked,the company may be unable to procure alternative guarantees satisfactory to the company`s lenders, which may adversely affect its business, results of operations, cash flows and financial condition

The company`s insurance policies may not be adequate to cover all losses incurred in the company`s business. An inability to maintain adequate insurance cover to protect the company from material adverse incidents in connection with its business may adversely affect the company`s operations and profitability.

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

The company is dependents on the company`s Promoters for functioning of the company`s business and the company believes that its senior management team and other key managerial personnel are critical to the company`s continued success and the company may be unable to attract and retain such personnel in the future.