OSEL Devices

Market Penetration and Geographic Expansion.

Embracing new technologies for Product Diversification and Innovation.

Focus on our Quality Control.

Marketing Strategy.

Growing its business with existing clients with quality and efficient services.

Reduction of operational costs and achieving efficiency.

One of the leading specialized LED display system and hearing aids manufacturer with long standing market presence.

Geographical presence.

Quality Assurance and Quality Control of its products.

Strong, cordial & long-term relationship with its clients.

Cost effective production and timely fulfilment of orders.

Well experienced management team.

Marque Customers.

Post Sale service and support.

Its commercial success is largely dependent upon the company ability to develop and design innovative products suitable for the requirements of its customers. The company inability to effectively utilize and manage its ability to develop and design innovative products would impact its business, revenue and profitability.

The Company is reliant on the demand from the healthcare industry for a significant portion of its revenue. Any downturn in the healthcare industry or an inability to increase or effectively manage its sales could have an adverse impact on the Company`s business and results of operations.

The commercial success of its products depends to a large extent on the success of the products of its end use customers. If the demand for the end use products in which its products are used as a raw materials declines, it could have a material adverse effect on its business, financial condition and results of operations.

The company depends on a few customers of its products, for a significant portion of the company revenue, and any decrease in revenues or sales from any one of its key customers may adversely affect its business and results of operations.

The company generates its major portion of sales from its operations in certain geographical regions. Any adverse developments affecting its operations in these regions could have an adverse impact on its revenue and results of operations.

The Company had negative cash flows in the past years, details of which are given below. Sustained negative cash flow could impact its growth and business.

The company has a limited operating history in respect of its products, which may make it difficult for investors to evaluate its business and prospects.

A part of the Issue proceeds will be utilized by the Company for repayment or prepayment of loans availed by the Company.

The company import majority of its raw materials from China. Any inability to pass on increased price of the key raw materials, used for manufacturing its products may affect the company profitability.

The company highly depends on its key raw material and a few key suppliers who help it procure the same. The Company has not entered into long-term agreements with its suppliers for supply of raw materials. In the event the company is unable to procure adequate amounts of raw materials, at competitive prices its business, results of operations and financial condition may be adversely affected.

Its Group Company is engaged in a similar line of business as the Company and may compete with the company.

The company also provide its products to various public sector units and undertakings which exposes it to risks inherent in doing business with them and may adversely affect its business, results of operations and financial condition.

The company typically does not have firm commitment with its customers. If the company customers choose not to source their requirements from it, there may be a material adverse effect on its business, financial condition, cash flows and results of operations.

There have been instances of delays in payment of statutory dues, i.e. GST by the Company. In case of any delay in payment of statutory due in future by the Company, the Regulatory Authorities may impose monetary penalties on it or take certain punitive actions against the Company in relation to the same which may have adverse impact on its business, financial condition and results of operations.

There have been instances of delays in filings of certain forms which were required to be filed as per the reporting requirements under the Companies Act, 2013 to RoC.

The company continued operations are critical to its business and any shutdown of its manufacturing unit may adversely affect the company`s business, results of operations and financial condition.

Any failures in its quality control processes may adversely affect the company`s business, results of operations and financial condition. Its may face product liability claims and legal proceedings if the quality of its products does not meet the company customers` expectations.

Under-utilization of its manufacturing capacities may have an adverse effect on its business, future prospects and future financial performance.

The Company requires significant amount of working capital for a continuing growth. Its inability to meet the company working capital requirements may adversely affect its results of operations.

In the event its marketing initiatives does not yield intended results its business and results of operations may be adversely affected.

Any delays and/or defaults in customer payments could result in increase of working capital investment and/or reduction of the Company`s profits, thereby affecting its operation and financial condition.

Its inability to effectively manage the company growth or to successfully implement its business plan and growth strategy could adversely affect its business, results of operations and financial condition.

The Company requires significant amount of working capital for a continuing growth. Its inability to meet the company working capital requirements may adversely affect its results of operations.

If the Company is unable to protect its intellectual property, or if the Company infringes on the intellectual property rights of others, its business may be adversely affected.

The company is dependent on information technology systems in carrying out its business activities and it forms an integral part of its business. Further, if the company is unable to adapt to technological changes and successfully implement new technologies or if the company faces failures of its information technology systems, its may not be able to compete effectively which may result in higher costs and would adversely affect its business and results of operations.

The Company has issued Equity Shares in the last one year at a price which may be lower that the Issue Price.

Its manufacturing unit, Registered Officer and Corporate Office are currently located in one geographical area. The loss of, or shutdown of or disruption in operations of its offices and unit will adversely affect its business, financial condition and results of operations.

Its may be unable to grow the company business in additional geographic regions or international markets, which may adversely affect its business prospects and results of operations.

The company does not own certain premises used by the Company. Disruption of its rights as licensee/ lessee or termination of the agreements with its licensors/ lessors would adversely impact the company manufacturing operations and, consequently, its business.

If the company is not able to obtain, renew or maintain its statutory and regulatory licenses, registrations and approvals required to operate its business, it may have a material adverse effect on its business, results of operations and financial condition.

The company is dependent on third party transportation providers for delivery of raw materials to us from its suppliers and delivery of the company finished products to its customers. The company has not entered into any formal contracts with its transport providers and any failures on part of such service providers to meet their obligations could adversely affect its business, financial condition and results of operation.

If the company is unable to identify customer demand accurately and maintain an optimal level of inventory proportionately, its business, results of operations and financial condition may be adversely affected.

The company has significant power requirements for continuous running of its manufacturing unit. Any disruption to its operations on account of interruption in power supply or any irregular or significant hike in power tariffs may have an effect on its business, results of operations and financial condition.

The company operates in a competitive business environment and its inability to compete effectively may adversely affect its business, results of operations, financial condition and cash flows.

Its Promoters, Directors, Senior Management and Key Managerial Personnel have interests in the Company other than reimbursement of expenses incurred or normal remuneration or benefits.

Its Promoters have extended personal guarantees with respect to loan facilities availed by the Company. Further, one of its Promoters have extended personal properties as collateral for securing the facilities availed by the Company. Revocation of any or all of these personal guarantees or withdrawal of such properties may adversely affect its business operations and financial condition.

Its Promoters and members of the Promoter Group have significant control over the Company and have the ability to direct its business and affairs; their interests may conflict with your interests as a shareholder.

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

Its future fund requirements, in the form of further issue of capital or securities and/or loans taken by it, may be prejudicial to the interest of the Shareholders depending upon the terms on which they are eventually raised.

The company has certain contingent liabilities and its financial condition and profitability may be adversely affected if any of these contingent liabilities materialize.

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

Its agreements with lenders for financial arrangements contain restrictive covenants for certain activities and if the company is unable to get their approval, it might restrict its scope of activities and impede the company growth plans.

The Company has availed certain unsecured loans from its Promoters and third parties, which are recallable in nature.

In addition to its existing indebtedness for its existing operations, its may incur further indebtedness during the course of business. The company cannot assure that its would be able to service its existing and/ or additional indebtedness.

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.

Its success largely depends upon the knowledge and experience of its Promoters, Directors and its Key Managerial Personnel. Loss of any of the company Directors and key managerial personnel or its ability to attract and retain them could adversely affect its business, operations and financial condition. Its success largely depends upon the knowledge and experience of its Promoters, Directors and the company Key Managerial Personnel. Loss of any of its Directors and key managerial personnel or the company ability to attract and retain them could adversely affect its business, operations and financial condition.

Its inability to procure and/or maintain adequate insurance cover in connection with its business may adversely affect the company operations and profitability.

The Company is subject to foreign exchange control regulations which can pose a risk of currency fluctuations.

Its ability to pay dividends in the future may be affected by any material adverse effect on its future earnings, financial condition or cash flows.

The deployment of funds is entirely at its discretion and as per the details mentioned in the chapter titled "Objects of the Issue".

The company has not independently verified certain data in this Red Herring Prospectus.

The requirements of being a listed company may strain its resources.

Delay in raising funds from the IPO could adversely impact the implementation schedule.

The Equity Shares have never been publicly traded and the Issue may not result in an active or liquid market for the Equity Shares.

There is no guarantee that the Equity Shares issued pursuant to the Issue will be listed on the SME Platform of National Stock Exchange of India Limited in a timely manner or at all.

There is no existing market for its Equity Shares, and the company does not know if one will develop to provide you with adequate liquidity. Further, an active trading market for the Equity Shares may not develop and the price of the Equity Shares may be volatile.

Any variation in the utilisation of the Net Proceeds or in the terms of any contract as disclosed in the Draft Red Herring Prospectus would be subject to certain compliance requirements, including prior shareholders` approval.

You will not be able to sell immediately on the Stock Exchanges any of the Equity Shares you purchase in the Issue.

There are restrictions on daily movements in the trading price of the Equity Shares, which may adversely affect a shareholder`s ability to sell Equity Shares or the price at which Equity Shares can be sold at a particular point in time.

The price of the Equity Shares may be volatile, which could result in substantial losses for investors acquiring the Equity Shares in the Issue.

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.

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