Safecure Services Ltd IPO

Objects of the Offer

• Grow our businesses across customer segments.

• Continuous training and skills upgradation and retain talented employees.

• Use and upgrade technology to improve productivity and customer satisfaction.

• To continue focus on providing Quality Services.

• Increase geographical presence.

• Leverage and enhance our market skills and goodwill in the market.

• Diverse portfolio of services.

• Experience team of professionals with domain expertise and successful track record.

• Advanced Technological Integration.

• Pan India presence.

• Diverse customer base.

• Optimum combination of Human Resource pool.

• Our business is subject to operational risks which are inherent in our business. Any failure on our part to manage such risk may have an adverse impact on our financials and result of operations.

• We derive major portion of our total revenue from the security services business. Any decrease in the demand for our security services may have an adverse impact on our business, financial condition and result of operations.

• We have significant employee benefit expenses, such as workers` compensation, staff welfare expenses and contribution to provident and other funds. In case we face an increase in employee costs that we are unable to pass on to our customers, we may be prevented from maintaining our competitive advantage and our profitability may be impacted.

• Our business derives a significant portion of its revenue from a few customers any loss of one or more such customers, the deterioration of their financial condition or prospects, or a reduction in their demand for our services could adversely affect our business, results of operations, financial condition and cash flows.

• We may be subjected to risk related to service-related claims and losses or employee disruptions which may have an adverse effect on our reputation, business, results of operations and financial condition.

• Our businesses are manpower intensive and our inability to attract and retain skilled manpower could have an adverse impact on our growth, business and financial condition.

• We are subject to several labour legislations and regulations governing welfare, benefits and training of our employees. Any increase in wage and training costs could adversely affect our business, financial condition and cash flows.

• The company business could be adversely affected if its customers fails to renew their contracts with the company or its fail to acquire new customers.

• The company requires certain approvals and licenses in the ordinary course of business and the failures to successfully obtain/renew such registrations would adversely affect its operations, results of operations and financial condition.

• The company does not own some of the business premises where its branch offices are located.

• Its may be unable to perform background verification procedures on its personnel as well as on the company billable employees prior to placing them with its customers.

• The Company, its Subsidiary, the company Promoters and its Directors are parties to certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.

• The company is dependent on its vendors for the supply of equipment and products that the company use in providing its E-Surveillance services, Repair & Maintenance of ATMs and Facility Management Services and and (IV) Interior Fit outs Work for corporate.

• Significant disruptions of information technology systems or breaches of data security could adversely affect its e-surveillance services. Further, the company may be exposed to risks and costs associated with protecting the integrity and security of its systems as well as the company customers` operational and other confidential information.

• Its may be required to obtain or renew certain approvals or licenses required in the ordinary course of business or to commence new businesses. Failures to obtain or maintain or renew licenses, registrations, permits and approvals may adversely affect its business, cash flows and results of operations.

• The industries in which the company operates are intensely competitive and have low barriers to entry in certain instances.

• The company security services businesses include the carrying and handling of firearms by certain of its employees. Any misuse or contravention of laws or policies relating to firearms by its personnel may adversely affect the company reputation and expose it to potential liabilities.

• Its customer agreements include conditions which may limit the company ability to carry out its business operations. Certain of the company customer agreements may be terminated without cause, which could have an adverse impact on its business.

• The company lenders have charge over its movable and immovable properties in respect of finance availed by the company.

• If the company is unable to successfully execute its growth strategies, its business, prospects and results of operations could be materially and adversely affected.

• The company may be unable to sufficiently obtain, maintain, protect, or enforce its intellectual property and other proprietary rights.

• The company has certain contingent liabilities as stated in the Restated Consolidated Financial Statement, and in the event, they materialize it could adversely affect its financial condition.

• Any inability on its part to collect amounts owed to the company or to pay amounts owed by its could result in the reduction of the company profits.

• The company is dependent upon the business experience and skill of its promoters and management personnel. Loss of the company management personnel or its inability to attract or retain such qualified personnel, could adversely affect its business, results of operations and financial condition.

• Sufficient working capital is essential to ensure the seamless daily operation of its business. If, for any reason, there is a disruption or the company encounter difficulties in obtaining the necessary working capital in a timely manner and under favorable terms, it could potentially have a detrimental impact on its operational efficiency, profitability, and prospects for growth.

• The company has availed unsecured loans which are repayable on demand. Any demand for repayment of such unsecured loans, may adversely affect its cash flows.

• The company has in past entered into related party transactions and its may continue to do so in the future.

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

• The company has not obtained credit ratings and may not be able to access capital to finance its operations and future growth of the company business, which could have a material adverse effect on its business, results of operations, financial condition, cash flows, and future prospects.

• There have been past instances of delays by the Company in filing of certain GST returns and making payments under the Employees Provident Fund and Miscellaneous Provisions Act, 1952. Any future instances of such delays may result in levy of penalties on the Company.

• Its management will have broad discretion in how the company apply the Net Proceeds, including interim use of the Net Proceeds, and there is no assurance that the objects of the Issue will be achieved within the time frame expected or at all, or that the deployment of the Net Proceeds in the manner intended by it will result in any increase in the value of your investment.

• An inability to maintain adequate insurance cover in connection with its business may adversely affect the company operations and profitability.

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

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

• Its may be affected by competition law, the adverse application or interpretation of which could adversely affect its business.

• The company has not made any alternate arrangements in order to meet its capital requirements for the Objects of the Issue. Additionally, the company has not identified any alternate source of financing the `objects of the Issue`. Any shortfall in raising / meeting the same could adversely affect its growth plans, operations and financial performance.

• Its ability to pay dividends in the future will depends upon the company future earnings, financial condition, cash flows, working capital requirements, capital expenditure and restrictive covenants in its financing arrangements.

• The average cost of acquisition of Equity Shares by its Promoter could be lower than the Issue Price.

• Its Promoters and some of the company Directors are interested in the Company, in addition to regular remuneration or benefits and reimbursement of expenses.

• Its Restated Financial Statements are reviewed and Signed by the Peer Review Auditors who is not Statutory Auditors of the Company as required under the provisions of SEBI ICDR Regulations.

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

• The company has availed benefit available under 80JJAA of the Income Tax Act, 1961 would be available till FY 2025-26 only.

• Industry information included in the Draft Prospectus has been derived from an industry report from various websites. The reliability on the forecasts of the reports could be incorrect and would significantly impact its operations.

• Subsequent to the listing of the Equity Shares, its may be subject to surveillance measures, such as the Additional Surveillance Measures and the Graded Surveillance Measures by the Stock Exchanges in order to enhance the integrity of the market and safeguard the interest of investors.

• The Equity Shares have never been publicly traded, and, after the Issue, the Equity Shares may experience price and volume fluctuations, and an active trading market for the Equity Shares may not develop. Further, the price of the Equity Shares may be volatile, and you may be unable to resell the Equity Shares at or above the Issue Price, or at all.

• The Issue price of its Equity Shares may not be indicative of the market price of the company Equity Shares after the Issue and the market price of its Equity Shares may decline below the Issue Price and you may not be able to sell your Equity Shares at or above the Issue Price.

• Any future issuance of Equity Shares, or convertible securities or other equity linked securities by the Company may dilute your shareholding and any sale of Equity Shares by its Promoters or members of the company Promoter Group may adversely affect the trading price of the Equity Shares.

• Fluctuation in the exchange rate between the Indian Rupee and foreign currencies may have an adverse effect on the value of its Equity Shares, independent of the company operating results.

• Rights of shareholders under Indian laws may be more limited than under the laws of other jurisdictions.

• QIB and Non-Institutional Investors are not permitted to withdraw or lower their Application (in terms of quantity of Equity Shares or the Application Amount) at any stage after submitting an Application.

• The Listing of the Equity Shares of the Company may get delayed or may not get listed on SME BSE at all. Investors will not be able to sell any Equity Shares on the Stock Exchange until we receive the appropriate listing and trading approvals.

• Subsequent to the listing of the Equity Shares, we may be subject to surveillance measures, such as the Additional Surveillance Measures and the Graded Surveillance Measures by the Stock Exchanges in order to enhance the integrity of the market and safeguard the interest of investors

• The Equity Shares have never been publicly traded, and, after the Issue, the Equity Shares may experience price and volume fluctuations, and an active trading market for the Equity Shares may not develop. Further, the price of the Equity Shares may be volatile, and you may be unable to resell the Equity Shares at or above the Issue Price, or at all.

• The Issue price of our Equity Shares may not be indicative of the market price of our Equity Shares after the Issue and the market price of our Equity Shares may decline below the Issue Price and you may not be able to sell your Equity Shares at or above the Issue Price.

• Any future issuance of Equity Shares, or convertible securities or other equity linked securities by our Company may dilute your shareholding and any sale of Equity Shares by our Promoters or members of our Promoter Group may adversely affect the trading price of the Equity Shares.

• Fluctuation in the exchange rate between the Indian Rupee and foreign currencies may have an adverse effect on the value of our Equity Shares, independent of our operating results.

• Rights of shareholders under Indian laws may be more limited than under the laws of other jurisdictions.

• QIB and Non-Institutional Investors are not permitted to withdraw or lower their Application (in terms of quantity of Equity Shares or the Application Amount) at any stage after submitting an Application.