India Shelter Finance IPO: Check out 10 key risk factors from RHP before investing

Here are the top 10 key risk factors mentioned in the India Shelter Finance IPO RHP.. 1) The firm requires substantial capital for its business and operations and any disruption in its sources of financing could have an adverse effect on our business, results of operations, and financial condition. . "Our business and results of operations depend on our ability to raise both, debt and equity from various external sources on suitable terms and in a timely manner, along with the costs associated therewith..

Our business and operations thus depend and will continue to depend on our ability to continually access these sources of financing," it said.. Read here: Happy Forgings IPO: From issue date to price band, here's all you need to know. 2) Any downgrade in the firm's credit ratings could increase its borrowing costs, affect its ability to obtain financing, and adversely affect its business, results of operations, and financial condition..

Credit ratings reflect the opinions of ratings agencies on our financial strength, operating performance, strategic position and ability to meet our obligations," it informed. 3) The firm's inability to comply with the financial and other covenants under its debt financing arrangements could adversely affect our business, results of operations and financial condition. . 4) The risk of non-payment or default by customers may adversely affect the firm's business, results of operations and financial condition..

Moreover, the firm added that it is subject to periodic inspections by the National Housing Bank and the Reserve Bank of India and non-compliance with observations made during any such inspections could result in penalties and fines, and could adversely affect its reputation, business, financial condition, results of operations and cash flows. 7) The firm's business is affected by volatility in interest rates for both lending and treasury operations, which could cause its net interest income to vary and consequently affect its profitability..

Any adverse outcome in such proceedings may have an adverse effect on our business, results of operations and financial condition. . "In the ordinary course of business, our Company and our Directors are involved in certain legal proceedings, which are pending at different levels of adjudication before various courts, tribunals and statutory, regulatory and other judicial authorities in India, and, if determined adversely, could affect our reputation, business, results of operations and financial condition..

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