Unihealth Consul

Risks

• The Company businesses is interconnected, and any deterioration in one of its group businesses can potentially have adverse effects on the overall performance of the company.

• The company face risks associated with providing project management consultancy services to the hospitals.

• The company revenue and profitability are inherently influenced by the project-based nature of its consultancy services.

• The company is subject to risks associated with its expansion strategy.

• The company distribution business faces risks of having a concentrated business.

• The company relies on third party suppliers for sourcing of its medical consumable products.

• One of the objects of the issue is to set up a disposable syringe manufacturing unit in the company subsidiary Biohealth Limited, Tanzania in which promoters have no experience.

• The company has not yet placed orders in relation to the capital expenditure to be incurred for the purchase of equipment / machinery. In the event of any delay in placing the orders, or in the event the vendors are not able to provide the equipment / machinery or other materials in a timely manner, or at all, may result in time and cost overruns and its business, prospects and results of operations may be adversely affected.

• If the company is unable to increase its hospital occupancy rates and reduce average length of stay of its patient in the company joint venture hospitals, its may not be able to generate adequate returns on the company capital expenditure.

• The company hospital business operations in Uganda and Nigeria are subject to competition from other hospitals and healthcare providers. The presence of competitors in the market poses a risk to its revenues, profitability, and market share.

• The company is involved in certain legal proceedings, which, if determined adversely, may affect its business and financial condition.

• The company Subsidiaries and Joint Ventures may not pay cash dividends on shares that its hold in them. Consequently, the Company may not receive any return on investments in its Subsidiaries, Joint Ventures and Associate Companies.

• The company business is depends on obtaining and maintaining governmental licenses necessary to operate its healthcare facilities.

• The company business is exposed to foreign exchange rate related fluctuations.

• Any downtime for maintenance and repair of its medical equipment could lead to business interruptions that could be expensive and harmful to its reputation and to the company business.

• The company Promoters, Directors and Key Managerial Personnel may have interest in its Company, other than reimbursement of expenses incurred, remuneration or other benefits received.

• The company require high working capital for its smooth day to day operations of business in its joint venture company, VHL and any discontinuance or the company inability to acquire adequate working.

• The company are subject to risks associated with expansion into new geographic regions.

• The company has not identified any alternate source of financing the objects of the Issue`. If its fail to mobilize resources as per its plans, its growth plans may be affected.

• The company has entered into and may continue to enter into related party transactions and there can be no assurance that such transactions have been on favourable terms.

• There have been instances in the past where the company have not made certain regulatory filings with the RoC and there were certain instances of discrepancies in relation to certain statutory filings and corporate records of the Company.

• The company Promoters and Promoter Group will be able to exercise significant influence and control over its operations after the issue and may have interests that are different from those of the company other shareholders.

• If the company is unable to keep abreast with technological changes, new equipment and service introductions, changes in patients` needs and evolving industry standards, its business and financial condition may be adversely affected. Further, the company will also incur costs associated with replacing obsolete equipment.

• The company contingent liabilities as stated in its Restated Financial Statements could affect its financial condition.

• The company may not be successful in implementing its business strategies.

• The Company has unsecured loans with a total outstanding amount of 2,211.80 lakhs as of December 31, 2022, that may be recalled by the lenders at any time.

• The company`s management will have flexibility in utilizing the net proceeds from the issue and the deployment of the net proceeds from the issue is not subject to any monitoring by any independent agency.

• The company success depends heavily upon its individual Promoters and Directors for their continuing services, strategic guidance and financial support.

• The company presently do not own the trademark or logo under which its currently operate and if third parties infringe the trademark, logo and intellectual property that its use, the company business and reputation would be adversely affected.

• The company Promoters and Directors have interests in entities, which are in businesses similar to its and this may result in potential conflict of interest with us.

• The company have certain amount of outstanding indebtedness, which requires significant cash flows to service and are subject to certain conditions and restrictions in terms of the company financing arrangements, which restricts its ability to conduct the company business and operations in the manner its desire.

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

• The company insurance coverage may not adequately protect it against potential risk, and this may have a material adverse effect on its business.

• The company ability to pay dividends in the future will depends upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures.

• The Equity Shares have never been publicly traded, and, after the issue, the equity shares may experience price and volume fluctuations, and an active trading market for the equity shares may not develop. Further, the price of the equity shares may be volatile, and you may be unable to resell the equity shares at or above the issue price, or at all.

• There are restrictions on daily weekly monthly movement in the price of the equity shares, which may adversely affect the shareholder`s ability to sell for the price at which it can sell, equity shares at a particular point in time.

• The company have not independently verified certain data in this Draft Red Herring Prospectus.

• QIB and Non-Institutional Investors are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage after submitting a Bid.

• Investors will not be able to sell immediately on an Indian stock exchange any of the Equity Shares they purchase in the Issue.

• Any future issuance of Equity Shares may dilute the shareholding of the Investor, or any sale of Equity Shares by the company Promoter or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.