Blue Jet Healthcare Ltd IPO

Risks

• The company`s business is dependent on the sale of its products to a few key customers, including those in Europe and the United States, which are regulated markets. The loss of one or more such customers, the deterioration of their financial condition or prospects, or a reduction in their demand for its products could adversely affect its business, results of operations, financial condition and cash flows.

• If the company is not able to commercialize new products in a timely manner, its business, financial condition and prospects will be adversely affected.

• The company`s inability to successfully expand its production capacity could have an adverse effect on its business, results of operations, financial condition and cash flows.

• A slowdown or shutdown in its manufacturing operations could have an adverse effect on its business, results of operations, financial condition and cash flows.

• Certain documents filed by it with the Registrar of Companies and certain corporate records and other documents, are not traceable.

• The company is not filed its audited consolidated financial statements for Financial Year 2020 in a timely manner.

• Any manufacturing or quality control problems may subject it to regulatory action or litigation, or breach of its contractual arrangements with customers, resulting in damage of its reputation and have an adverse effect on the company business, operations, financial condition and cash flows.

• Any delay, interruption or reduction in the supply or transportation of raw materials or an increase in the costs of such raw materials to manufacture its products may adversely affect its business, results of operations, financial condition and cash flows.

• Its inability to accurately forecast demand for the company products and manage its inventories may have an adverse effect on its business, results of operations, financial condition and cash flows.

• The company face foreign exchange risks that could adversely affect its results of operations and cash flows.

• Its manufacturing facilities and procurement operations are concentrated in one state and any adverse developments affecting this region could have an adverse effect on its business, results of operations and financial condition.

• The company has significant working capital requirements. If the company experience insufficient cash flows to fund its working capital requirements, there may be an adverse effect on its business, cash flows and results of operations.

• The COVID-19 pandemic, or any future pandemic or widespread public health emergency, could adversely impact its business, results of operations, financial condition and cash flows.

• The company is subject to extensive government regulations and if its fail to obtain, maintain or renew the required statutory and regulatory licenses, permits and approvals, its business, results of operations and cash flows may be adversely affected.

• Its insurance coverage may not be sufficient or adequate to protect it against all material hazards, which may adversely affect its results of operations, financial condition and cash flows.

• The Company is or may be involved in certain legal and regulatory proceedings. Any adverse decision in such proceedings may have a material adverse effect on its business, financial condition, cash flows and results of operations.

• The interests of some of its Directors and the company Promoters may conflict with its interests or with the best interests of the company other Shareholders.

• Pricing pressure from customers may affect its gross margin, profitability and ability to increase its prices, which in turn may adversely affect its business, results of operations, financial condition and cash flows.

• The company is exposed to counterparty credit risk and any delay in receiving payments or non-receipt of payments may adversely impact its results of operations.

• The company is currently entitled to certain incentive schemes. Any decrease in or discontinuation of such schemes may affect its results of operations.

• If the company inadvertently infringe on the patents or intellectual property rights of others, its may be subjected to legal action and its business and reputation may be adversely affected.

• Acquisitions of and investments in other companies, businesses, properties or technologies could result in operating difficulties, dilution and other adverse consequences.

• Non-compliance with and changes in environmental, health and safety and labor laws, or accidents giving rise to civil or criminal liabilities, may adversely affect its business, results of operations, financial condition and reputation.

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

• Its inability to compete effectively may adversely affect its business, results of operations and financial condition and cash flows.

• Negative publicity could damage its reputation and adversely impact its business and financial results.

• The company is dependent on a number of key personnel, including its senior management. Its inability to attract or retain such persons could adversely affect its business, results of operations, financial condition and cash flows.

• The company enter into certain related party transactions in the ordinary course of its business and the company cannot assure you that such transactions will not have an adverse effect on its results of operation and financial condition.

• The improper handling, processing or storage of raw materials or products, or spoilage of and damage to such raw materials and products, or any real or perceived contamination in its products, could subject it to regulatory and legal action, damage its reputation and have an adverse effect on the company business, results of operations and financial condition.

• Its contracts are governed by the laws of various countries and disputes arising from such contracts may be subject to the exclusive jurisdiction of courts situated in such countries.

• The company has certain contingent liabilities, which, if they materialize, may affect its results of operations, financial condition and cash flows.

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

• Any failure in the company information technology systems could adversely affect its business.

• Its inability to detect money-laundering and other illegal activities fully and on a timely basis may expose it to additional liability and adversely affect its business and reputation.

• Its Promoters and Directors have interests in it other than reimbursement of expenses incurred (in the ordinary course of business to the nature of their duties in their capacity as Promoters and Directors of the Company) and normal remuneration or benefits.

• Delay or failure in the performance of its contracts may adversely affect the company business, results of operations and financial condition.

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

• The company track certain operational metrics, which are not a measurement under Ind AS, with internal systems and tools. These operational metrics are subject to inherent challenges in measurement.

• The trademark used by it is licensed to the company by its Promoter, Akshay Bansarilal Arora, and is not owned by us. If the company is unable to protect its proprietary information or other intellectual property, its business may be adversely affected.

• Certain sections of this Draft Red Herring Prospectus contain information from the IQVIA Report which has been exclusively commissioned and paid for by it. There can be no assurance that such report is complete, and any reliance on such information for making an investment decision in the Offer is subject to inherent risks.

• The information relating to the capacity and capacity utilization of its manufacturing facilities is based on various assumptions and estimates of its management and certified by an independent chartered engineer and its future production and capacity may vary.

• Its Statutory Auditors and previous statutory auditors have included certain observations for the Financial Years 2020, 2021 and 2022 as required under the Companies (Auditor`s Report) Order, 2016 / Companies (Auditor`s Report) Order, 2020, as applicable.

• Its manufacturing facilities, R&D facilities, and Registered Office are situated on leasehold lands. Failure to comply with the conditions of the use of such land could result in an adverse impact on its business and operations. Further, there can be no assurance that these lease agreements will be renewed upon termination or that the company will be able to obtain other premises on lease on same or similar commercial terms.