Shellz India Ltd IPO

Ability to develop differentiated products across formats and price points.

Our presence at mass-market price-points supported by a diversified product portfolio.

Super stockist-led distribution model enabling scalable market reach.

Integrated in-house manufacturing capabilities with focus on scalability and process control.

In-house product development capabilities supported by technical expertise.

Experienced Promoters and Management Team.

The companys inability to anticipate, respond to and meet the tastes, preferences or consistent quality requirements of itsconsumers or the companys inability to accurately predict and successfully adapt to changes in market demand or consumerpreference could reduce demand for its products, affect the companys brand loyalty and impact its sales.

The company has incurred significant indebtedness which exposes it to various risks which may have an adverse effect on the companysbusiness, results of operations and financial conditions. Conditions and restrictions imposed on it by the agreementsgoverning the companys indebtedness could adversely affect its ability to operates the companys business. Further, there have been certaininstances of delay in repayment of borrowings which have been reported in the companys credit history records, including inreports issued by credit information companies.

There are outstanding legal proceedings involving the Company, Subsidiaries, Group Companies, Promoters, Directors,Key Managerial Personnel and Senior Managerial Personnel. Any adverse decision in such proceedings may have amaterial adverse effect on the companys business, results of operations and financial condition.

The company had been in past subject to legal proceedings under Insolvency and Bankruptcy Code, 2016 and Section 138 of theNegotiable Instruments Act, 1881. Any such legal proceedings against the Company would lead to an adverse impacton the results of operations, cash flows and financial condition.

The company proposed shifting of manufacturing operations from Delhi to Sonipat, Haryana may involve operational risks anduncertainties which could adversely affect the companys business, operations and financial condition.

The companys Delhi Manufacturing Unit did not hold a valid factory licence for a certain period, which may expose it and the companysofficers to regulatory action.

The company has been involved in disputes and litigation with certain vendors and suppliers in the past and may continue to facessuch disputes in the future. Further, the company does not have long-term agreements with most of its suppliers for the supply ofraw materials. Any disruption in procurement of raw materials or deterioration of supplier relationships could adverselyaffect the companys business, financial condition and results of operations.

The company has experienced negative cash flows in previous Fiscals and may continue to have negative cash flows in the future.

The company does not have long-term agreements with majority of its customers. Any changes or cancellations to the companys orders orits inability to forecast demand for the companys products may adversely affect its business, results of operations and financialcondition.

The company has received complaints in relation to certain aspects on its Draft Red Herring Prospectus post the filing of the companysDraft Red Herring Prospectus which have been responded to.