Owais Metal

Focus on Increase in Volume of Sales.

New Products to be added in its Portfolio.

Improving operational efficiencies.

Improving operational efficiencies.

Enhance customer base and to establish long-term relationships.

To build-up a professional organization.

Expand geographical reach.

Strengthening up its business through effective branding, promotional and digital activities.

There are outstanding legal proceedings involving the Company, Promoters and Directors. Any adverse decision in such proceeding may have a material adverse effect on its business, results of operations and financial condition.

The Company has been formed specifically for the purpose of acquisition of the business of M/s Owais Ali Overseas (Proprietorship firm of its Promoter) thus the company has limited operating history as a Company which may make it difficult for investors to evaluate its historical performance or prospects.

Its Registered Office is not owned by it. The same is occupied by the company on a lease basis. Disruption of its rights as lessee or termination of the agreements with its lessor would adversely impact its operations and, consequently, its business.

Substantial portion of its revenues has been dependent upon few customers, with which the company does not have any firm commitments. Loss of its key customers or significant reduction in demand from, its significant customers may materially and adversely affect its business and financial performance.

Its business involves usage of manpower and any unavailability of the company employees or shortage of contract labour or any strikes, work stoppages, increased wage demands by workmen or changes in regulations governing contractual labour may have an adverse impact on its cash flows and results of operations.

Any failure to maintain quality control systems for its goods could have a material adverse effect on the company`s business, reputation, results of operations and financial condition.

The Company have undertaken business activities not contained into the Main Object clause of the MOA. Although due rectification of the MOA non-compliance has been made, we are not sure if the Company may be subjected to penalties for any of its past actions in this respect.

The company generally do business with its customers on purchase order basis and do not enter into long term contracts with most of them.

The company does not generally enter into agreements with its raw material suppliers or traded goods suppliers. Any disruption in supplies from them may adversely affect its production process.

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

The company is dependent upon few suppliers for its raw material for its current manufacturing facilities. In an eventuality where its suppliers are unable to deliver it the required materials in a time-bound manner it may have a material adverse effect on its business operations and profitability.

The company requires a number of approvals, NOCs, licenses, registrations and permits in the ordinary course of its business. Some of the approvals are required to be obtained by its Issuer Company and any failure or delay in obtaining the same in a timely manner may adversely affect its operations.

There are certain Operational, Geopolitical and Trade Risks involved in the manufacturing activities carried on by the company.

Environmental and Regulatory Compliance.

Its business is capital intensive. If the company experience insufficient cash flows to meet required payments on its debt and working capital requirements, there may be an adverse effect on its operations.

The Company is yet to place orders for 100% of the plant & machineries for its proposed object, as specified in the Objects of the Issue. Any delay in placing orders, procurement of plant & machineries may delay its implementation schedule and may also lead to increase in price of these plant & machineries, further affecting its revenue and profitability.

Its business is subject to various operating risks at the company sites, the occurrence of which can affect its results of operations and consequently, financial condition of the Company.

Too much Geographical concentration of its Business in one location can impact the company`s Business.

Majority of its revenue is dependent on two products i.e., MC Manganese and Processing if Ferro Alloys inability to anticipate or adapt to evolving upgradation of products or inability to ensure product quality or reduction in the demand of such products may adversely impact its revenue from operations and growth prospects.

Brand recognition is important to the success of its business, and the company inability to build and maintain its brand names will harm its business, financial condition and results of operation.

The company may not be able to realise the amounts, partly or at all, reflected in its Order Book which may materially and adversely affect its business, prospects, reputation, profitability, financial condition and results of operation.

Its success depends in large part upon its qualified personnel, including the company senior management, directors and key personnel and its ability to attract and retain them when necessary.

The company face competition in its business from domestic competitors. Such competition would have an adverse impact on its business and financial performance.

The Company has not made any provision for payment of gratuity to the company`s employees.

The company is yet to obtain consent from its lender banks for the Issue, the same is under process and are subject to certain conditions and restrictions in terms of its financing arrangements.

Heavy dependence on its Promoter for the continued success of its business through his continuing services, strategic guidance, and support.

Significant security breaches in its computer systems and network infrastructure and fraud could adversely impact its business.

Its lenders have imposed certain restrictive conditions on it under the company financing arrangements. Under its financing arrangements, the company is required to obtain the prior, written lender consent for, among other matters, changes in its capital structure, formulate a scheme of amalgamation or reconstruction and entering into any other borrowing arrangement.

Delay in delivery of the products due to breakdown of machinery.

The company is dependent on third party vendors for delivery of materials required to it from its suppliers and delivery of its products to the company clients. Any failure on part of such vendors to meet their obligations could have a material adverse effect on its business, financial condition and results of operation.

The shortage or non-availability of power facilities may adversely affect its business and have an adverse impact on the company`s results of operations and financial condition.

Its business may be affected by severe weather conditions and other natural disasters.

General economic and market conditions in India and globally could have a material adverse effect on its business, financial condition, cash flows, results of operations and prospects.

Major fraud lapses of internal control or system failures could adversely impact the company`s business.

The company continue to explore the diversification of its business and the implementation of new products. These diversifications and its other strategic initiatives may not be successful, which may adversely affect its business and results of operations.

Its inability to manage growth could disrupt the company`s business and reduce its profitability. Its propose to expand its business activities in coming financial years.

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

The nature of its business exposes it to liability claims and contract disputes and its indemnities may not adequately protect it. Any liability in excess of its reserves or indemnities could result in additional costs, which would reduce its profits.

Employee fraud or misconduct could harm it by impairing its ability to attract and retain clients and subject it to significant legal liability and reputational harm.

Its operations may be adversely affected in case of industrial accidents at its working sites.

Its operating expenses include overheads that may remain fixed in the medium term. In case there is any decline in its operating performance, its may be unable to reduce such expenses.

The Company has a negative cash flow in its operating activities for the period ended August 31, 2023 and for the financial year ended on March 31, 2023 and investing activities for the period ended August 31, 2023, details of which are given below. Sustained negative cash flow could impact its growth and business.

The average cost of acquisition of Equity Shares by the Promoter may be less than the Issue Price.

Delays or defaults in payments from its clients could result into a constraint on the company cash flows. The efficiency and growth of its business depends on timely payments received from the company clients.

Its insurance coverage may not adequately protect the company against losses, and successful claims against it that exceed its insurance coverage could harm its results of operations and diminish its financial position.

There are no alternate arrangements for meeting its requirements for the Objects of the Issue. Any shortfall in raising / meeting the same could adversely affect its growth plans, operations and financial performance.

Its actual results could differ from the estimates and projections used to prepare its financial statements.

Guarantees from Promoters & Directors as well as others have been taken in relation to the debt facilities provided to it.

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

Any future acquisitions, joint ventures, partnerships, strategic alliances, tie-ups or investments could fail to achieve expected synergies and may disrupt its business and harm the results of operations and the company financial condition.

Its future funds requirements, in the form of fresh 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.

Some of the KMPs is associated with the company for less than one year.

There is no guarantee that its Equity Shares will be listed on the Stock Exchanges in a timely manner or at all.

The deployment of funds raised through this Issue shall not be subject to any Monitoring Agency and shall be purely dependent on the discretion of the management of the Company.

Negative publicity could adversely affect its revenue model and profitability.

Industry information included in this Draft Red Herring Prospectus has been derived from industry reports commissioned by it for such purpose. There can be no assurance that such third-party statistical, financial and other industry information is either complete or accurate.

The requirements of being a public listed company may strain its resources and impose additional requirements.

There are restrictions on daily/weekly/monthly movements in the price of the Equity Shares, which may adversely affect a shareholders`ability to sell, or the price at which it can sell, Equity Shares at a particular point in time.

After this Issue, the price of the Equity Shares may be highly volatile, or an active trading market for the Equity Shares may not develop.

You will not be able to sell immediately on Stock Exchange any of the Equity Shares you purchase in the Issue until the Issue receives appropriate trading permissions.

The Issue price of its Equity Shares may not be indicative of the market price of the company Equity shares after the issue.

Sale of Equity Shares by its Promoters or other significant shareholder(s) may adversely affect the Trading price of the Equity Shares.