Sattva Engineering Construction Ltd IPO

Strong Order Book from Urban Local Bodies and Government bodies with repeat orders.

Established track record for project execution.

In house designing, engineering and execution team.

End to end project management and execution capabilities.

Managing diverse segments of infrastructure projects.

Experienced management team.

Our employees may engage in misconduct or other improper activities, including non-compliance with regulatory standards and requirements and the same may results into imposition of criminal penalties, fines, revocation of regulatory approvals and harm to our reputation, any of which could form a material adverse effect on our business.

Some of our Directors do not have experience of being a director of a public listed company.

Our funding requirements and the proposed deployment of Net Proceeds are not appraised by any independent agency and are based on management estimates which may be subject to change based on various factors, some of which are beyond our control. Further, deployment of funds raised through this Issue shall not be subject to monitoring by any monitoring agency.

We have issued the following shares in the last one year prior to the date of this Draft Red Herring Prospectus, which may be at a price lower than the Issue Price.

The average cost of acquisition of Equity Shares by our Promoters could be lower than the floor price.

We have presented certain supplemental information of our performance and liquidity which is not prepared under or required under Indian GAAP

We bid for Water Supply Scheme (WSS) with underground and overhead tank, Under GroundSewerage System (UGSS), Sewage Treatment Plants (STP) and Water Treatment Plants (WTP)primarily for government authorities/bodies. These projects are partly funded by the CentralGovernment under schemes like the Atal Mission for Rejuvenation and Urban Transformation(AMRUT) and the Jal Jeevan Mission (JJM) along with contribution from states or ULBs undertheir respective schemes. Any reduction in budgetary allocation to this sector may affect the numberof projects that the government authorities/bodies may plan to develop in a particular period. Ourbusiness is directly and significantly dependent on projects awarded by them.

Our business is working capital intensive. If we experience insufficient cash flows or are unable toaccess suitable financing to meet working capital requirements and loan repayment obligations, ourbusiness, financial condition and results of operations could be adversely affected.

Quoting for a contract involves various management activities such as detailed project study and costestimations. Inability to accurately estimate the cost may lead to a reduction in the expected rate ofreturn and profitability estimates.

We are heavily dependent on government or government-funded entities for our business, whichexposes us to various risks, including regulatory scrutiny, delays in receivables, project executionrisks, and policy-related uncertainties.