RED HERRING PROSPECTUS Dated August 24 ... - Globus Spirits

8. Dependence on agri products
Management Perception
The Company has mitigated the above with the help of technology wherever possible like
being able to process a variety of agri raw materials in the event of crop failures of one or
two commodities.
9. The Company’s performance is highly dependent upon the growth of business and
economy in the State and the country, whose progress and welfare generates the
demand. An economic down turn may negatively impact the operating results of
the Company.
10. Regional conflicts in South Asia could adversely affect the Indian economy, which
in turn may disrupt the Company’s operations and cause its business to suffer.
11. Company’s performance is linked to the stability of policies and political situation
in India.
12. Since the Equity Shares of the Company are required to be traded compulsorily in
demat form, shareholders who have been allotted/who hold shares in Physical
Form may not be able to trade in such Equity Shares unless they get their holdings
dematerialized.
13. After this Issue, the price of the Company’s Equity Shares may be highly volatile,
or an active trading market for its Equity Shares may not develop.
The prices of the Company’s Equity Shares on the Indian stock exchanges may fluctuate
after this Issue as a result of several factors, including:
• Volatility in the Indian and global securities market or in the Rupee’s value relative
to the U.S. dollar, the Euro and other foreign currencies;
• Perceptions about the future performance or the performance of Indian liquor
companies in general;
• Performance of the competitors in the Indian liquor industry and the perception in
the market about investments in the industry;
• Adverse media reports on the Company or the Indian liquor industry;
• Changes in the estimates of the Company’s performance or recommendations by
financial analysts;
• Significant developments in India’s fiscal and environmental regulations.
• There can be no assurance that an active trading market for our Equity Shares will
develop or be sustained after this Issue, or that the prices at which the Company’s
Equity Shares are initially traded will correspond to the prices at which the Equity
Shares will trade in the market subsequent to this Issue.
• The Company’s share price is likely to be volatile and may decline post-listing.
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