Infinium Pharma

Risks

• The property used by the Company for the purpose of its operations and storage is not owned by the company. Any termination of the relevant lease agreement or rent agreement in connection with such property or its failure to renew the same could adversely affect its operations.

• The company operations are dependent on some of the customer requirements and there is a risk of acceptance of its products by the customers.

• The company manufacturing process involves the use of hazardous and flammable industrial chemicals which entails significant risks and could also result in enhanced compliance obligations.

• Conditions and restrictions imposed on it by the agreements governing the company indebtedness could adversely affect its ability to operate the company business.

• The company is completely reliant on third-party transportation service providers for the movement of raw materials and finished products.

• Failure to meet quality standards required by its customers for the company products and processes may lead to cancellation of existing and future orders and expose the company to warranty claims.

• The company operate in a highly competitive industry. Any inability to compete effectively may lead to a lower market share or reduced operating margins.

• The company Promoter and Promoter Group will continue to exercise control post completion of the Issue and will have considerable influence over the outcome of matters.

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

• In addition to normal remuneration, other benefits and reimbursement of expenses to its Promoters and Directors; they are interested to the extent of their shareholding and dividend entitlement thereon in the Company and for the transactions entered into between the Company and themselves as well as between the Company and our Group Companies / Entities.

• The Company has in the past entered into related party transactions and may continue to do so in the future and its cannot assure you that the company could not have achieved more favourable terms if such transactions had not been entered into with related parties. And will not have an adverse effect on its financial conditions and result of operations.

• Strikes, work stoppages or increased wage demands by the company employees or any other kind of disputes with its employees/workmen in future could adversely affect its business and results of operations.

• Compliance with, and changes in, safety, health and environmental laws and various labour, workplace and related laws and regulations impose additional costs and may increase its compliance costs and a such adversely affect the company results of operations and its financial condition.

• The company management has discretion in how it may use the proceeds of the Offer. Any variation in the utilisation of its Net Proceeds would be subject to certain compliance requirements, including prior shareholders` approval.

• The company business requires it to obtain and renew certain registrations, licenses and permits from government and regulatory authorities and the failure to obtain and renew them in a timely manner may adversely affect its business operations.

• The company Object has not been appraised by any Bank or Financial Institution. Any significant deviation in the Object could adversely impact its operations and sustainability in absence of any independent monitoring agency.

• There is no monitoring agency appointed by the Company and the deployment of funds are at the discretion of its Management and the company Board of Directors, though it shall be monitored by its Audit Committee.

• The company business is dependent on its continuing relationships with the company clients, with whom its have not entered into long term arrangements.

• The company Promoters, members of Promoter Group and third party have mortgage their properties and provided personal guarantees to certain loan facilities availed by it, which if revoked may require alternative guarantees, repayment of amounts due or termination of the facilities.

• The average cost of acquisition of Equity shares by its Promoters is lower than the Issue price. The company promoters` average cost of acquisition of Equity shares in the Company is lower than the Issue Price of Equity shares as given below.

• The company could be adversely affected if its fail to keep pace with technical and technological developments in the Pharmaceutical industry.

• The company operations are dependent on research and development (R&D).

• The company continued success is dependent upon its ability to hire, retain, and utilize qualified personnel.

• The company require high working capital for its smooth day to day operations of business and any discontinuance or its inability to acquire adequate working capital timely and on favorable terms at a future date, may have an adverse effect on its operations, profitability and growth prospects.

• The company insurance coverage may be inadequate to satisfy future claims against it.

• The company success largely depends on its Board and Key Managerial Personnel and the company ability to attract and retain them. Any loss of its director and key managerial personnel could adversely affect its business, operations and financial condition.

• The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the issue. Further 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.

• Certain information contained in this Draft Prospectus is based on management estimates and the company cannot assure you of the completeness or accuracy of the data.

• The company inability to protect or use its intellectual property rights may adversely affect the company business.

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