Shipwaves Online Ltd IPO

Strengths

Risks

• The Company, Directors, Promoters and Group Companies are parties to certain legal proceedings. Any adverse decision in such proceedings may has a material adverse effect on the company business, results of operations and financial condition.
• Dependence on Leased Premises for Business Operations.
• Its dependent on and derive a substantial portion of the company revenue from a limited number of customers. Cancellation or orders by customers or delay or reduction in their orders could has a material adverse effect on the company business, results of operations and financial condition.
• The Company is dependent on a few suppliers for purchases of product/service. The loss of any of these large suppliers may affect its business operations.
• Any adverse development affecting the growth of trade volumes and freight rates may has an adverse effect on the company business, results of operations and financial condition.
• Low Revenue Contribution and Growth Challenges in SaaS Segment
• The Company had negative cash flow in recent fiscals, details of which are given below. Sustained negative cash flow could adversely impact its business, financial condition and results of operations.
• The Company has entered into certain related party transactions and may continue to does so in the future.
• Its does not verify the contents of the goods transported by it, thereby exposing it to the risks associated with the transportation of goods in violation of applicable regulations.
• The company has been some instances of delayed filing of returns and depositing of statutory dues with regulatory authorities.
• There are certain instances of delays in the past with ROC/Statutory Authorities.
• Its lenders has charge over the company assets in respect of finance availed by it.
• The Company does not has Custom House Agent (CHA) license in its name.
• The company has not entered into any long-term contracts with any of its clients.
• Its may be unable to meet certain obligations including timelines of delivery, due to which its could become liable to claims by customers, suffer adverse publicity and incur substantial costs as a result of deficiency in the company services, which in turn could adversely affect its results of operations.
• Impact of Red Sea crisis may has a sustained impact on company's operational performance and long-term growth.
• The company has been some instances of non-compliance with regulatory timelines.
• The average cost of acquisition of Equity Shares by its Promoters is lower than the Issue Price.
• The Company has availed certain unsecured loan which can be recalled at any time.
• The company could be harmed by employee misconduct or errors that are difficult to detect and any such incidences could adversely affect its financial condition, results of operations and reputation.
• The company depends on Third-Party Infrastructure and Lack of Owned Operational Assets
• Its may face competition from a number of international and domestic third-party logistics companies, which may adversely affect its market position and business.
• The company Group Entity has incurred losses in the past and may incur losses in the future.
• The company has certain contingent liabilities, which, if materialized, may affect its financial condition and results of operations.
• Any disruptions which affect its ability to utilize the transportation network in an uninterrupted manner could result in delays, additional costs or a loss of reputation or profitability.
• The company freight forwarding business depends upon its network of overseas agents for fulfillment of logistics needs of its customers. the company inability to maintain its relationships with the overseas agents or deficiency in the service provided by such agents may adversely affect its revenues and profitability.
• The company insurance coverage may not adequately protect it against all material hazards, which may adversely affect its business, results of operations and financial condition.
• Its may not be able to acquire warehouses and other logistics facilities in desirable locations that are suitable for the company expansion at commercially reasonable prices and its expansion plans may be delayed or affected by various factors.
• Reliance on IT Systems and Cybersecurity Risks.
• As the company continue to grow, its may not be able to effectively manage the company growth and the increased complexity of the company business, which could negatively impact its brand and financial performance.
• Its subject to risks arising from exchange rate fluctuations.
• Its may not be successful in implementing the company business strategies.
• The company Promoters and promoter group has significant controlling interest over the Company and has the ability to direct its business and affairs; their interests may conflict with your interests as a shareholder.
• The company experience the effects of seasonality, which may result in the company operating results fluctuating significantly.
• General economic and market conditions in India and globally could has a material adverse effect on its business, financial condition, cash flows, results of operations and prospects.
• The company business requires it to obtain and renew certain licenses and permits from government, regulatory authorities and other national/ international corporations and the failure to obtain or renew them in a timely manner may adversely affect its business operations.
• Its could become liable to customers, suffer adverse publicity and incur substantial costs as a result of deficiency in the company services, which in turn could adversely affect the value of its brand, and the company sales could be diminished if the company associated with negative publicity.
• Brand recognition is important to the success of the company business, and its inability to build and maintain the company brand names will harm its business, financial condition and results of operation.
• The future operating results are difficult to predict and may fluctuate or adversely vary from the past performance.
• Portion of its Issue Proceeds are proposed to be utilized for general corporate purposes amounting to ? 845.28 lakhs which constitute 15.00% of the total Issue Proceeds.
• In addition to its existing indebtedness for the company operations, its may be required to obtain further loan during the course of business. There can be no assurance that its would be able to service the company existing and/or additional indebtedness.
• The intellectual Property Rights used by the company are registered in the name of the company, but any infringement of third-party intellectual property rights or failure to protect the company intellectual property rights may adversely affect its business.
• The company debt financing agreements contain certain restrictive covenants that may adversely affect the Company's business, credit ratings, prospects, results of operations and financial condition.
• The company has not made any alternate arrangements for meeting its regular working capital requirements. If the company unable to manage/arrange funds (including at short notice) to meet its working capital requirements, there may be an adverse effect on the company results of operations and financial performance.
• Within the parameters as mentioned in the chapter titled "Objects of this Issue" beginning on page 76 of this Prospectus, the Company's management will has flexibility in applying the proceeds of this Issue subject to applicable laws. The fund requirement and deployment mentioned in the Objects of this Issue has not been appraised by any bank or financial institution.
• Its Promoters has provided personal guarantees for loans availed by the Company. the company business, financial condition, results of operations, cash flows and prospects may be adversely affected by the invocation of all or any personal guarantees provided by its Promoter.
• The company KMPs are associated with the Company for less than one year.
• Major fraud, lapses of internal control or system failures could adversely impact the company's business.
• Industry information included in this prospectus has been derived from industry reports. There can be no assurance that such third-party statistical, financial and other industry information is either complete or accurate.
• In the event there is any delay in the completion of the Issue, there would be a corresponding delay in the completion of the objects of this Issue which would in turn affect its revenues and results of operations.
• The Issue Price of its Equity Shares may not be indicative of the market price of the company Equity Shares after the Issue.
• After this Issue, the price of the company Equity Shares may be volatile, or an active trading market for the company Equity Shares may not be sustained.
• There is no guarantee that its Equity Shares will be listed on the SME Platform of BSE Limited in a timely manner or at all.
• The investors will not be able to sell immediately on an Indian stock exchange any of the Equity Shares they purchase in the Issue.
• There are restrictions on daily movements in the price of the Equity Shares, which may adversely affect a shareholder's ability to sell, or the price at which it can sell, Equity Shares at a particular point in time.
• You may be subject to Indian taxes arising its of capital gains on sale of Equity Shares.
• Applicants to this Issue are not allowed to withdraw their Applications after the Issue Closing Date.
• Any future issuance of Equity Shares may dilute the investors' shareholdings or sales of the company Equity Shares by its Promoters or Promoter Group may adversely affect the trading price of the company Equity Shares.
• Its ability to pay dividends in the future will depend on the company earnings, financial condition, working capital requirements, capital expenditures and restrictive covenants of the company financing arrangements.
• The company Equity Shares are quoted in Indian Rupees in India, and therefore investors may be subject to potential losses arising out of exchange rate risk on the Indian Rupee and risks associated with the conversion of Indian Rupee proceeds into foreign currency.
• Certain key performance indicators for certain listed industry peers included in this Prospectus has been sourced from public sources and there is no assurance that such financial and other industry information is complete.
• The investors may be restricted in their ability to exercise pre-emptive rights under Indian law and may be adversely affected by future dilution of their ownership position.
• Rights of shareholders under Indian law may be more limited than under the laws of other jurisdictions.