Denta Water And Infra Solutions Limited - IPO

1. Established expertise in water management projects with special focus on ground water recharging.

2. Expertise in in-house designing and engineering of water management infrastructure projects.

3. Strong management team.

4. Strong order book.

5. Established track record for project execution.

6. Efficient business model.

1. In the past, one of our Promoters, C Mruthyunjaya Swamy, in the capacity as a secretary of the Public Works Department, Karnataka, has been subjected to enquiry by the Lokayukta Police, Bangalore ("Lokayukta") and initiation of certain legal proceedings by the Enforcement Directorate against him, which was subsequently disposed off. Although Mr. C Mruthyunjaya Swamy is currently retired from the services of Government of Karnataka, there is no assurance that legal proceedings will not be reopened by Lokayukta or any other relevant authority against him. Any further development in the above-mentioned legal proceedings or other authorities may adversely affect our business, results of operations and financial condition.

2. Certain untraceable persons have filed complaints with SEBI and other authorities against our Company and our Promoter, C Mruthyunjaya Swamy, with allegations including indulging in corrupt practices, misusing of authority by our Promoter while being in public service and influencing the government officers in awarding the contracts to our Company, among others. There is no assurance that our Company or SEBI or other authorities do not receive similar complaints in future. Any further development in similar complaints filed with SEBI or other authorities may adversely affect our business, results of operations and financial condition.

3. Our revenue contribution from government clients has increased from 18.25% in FY 2023 to 63.40% as of FY 2024, and we currently rely substantially on our government clients for our revenues.

4. Our Company relies heavily on the Government of Karnataka for its business. 83.98% of our revenue from operations in six months period ended September 30, 2024, is from Government of Karnataka.

5. Delays in completion of our current and future projects and time overrun could have adverse effect on our business prospects and results of operations.

6. We are significantly dependent on the procurement of projects. Our revenue and earnings are dependent upon award of new contracts which we cannot directly control. If we fail to secure new contracts on a continual basis, our operating results may be materially and adversely affected, and we may be unable to secure projects or maintain our growth it may impact our profitability and subsequently our revenues, and business operations.

7. Contracts awarded by the Government of Karnataka ("GoK') may provide GoK with the right to terminate the contract for convenience, without any reason which may impact our business operations, profitability and results of operations.

8. There is an outstanding litigation against our Promoter, Sowbhagyamma. Any adverse decision in such proceedings may render us / them liable to liabilities / penalties and may adversely affect our business, results of operations and financial condition.

9. The immediate relatives of our promoters, who are deemed to be a part of the Promoter Group under the SEBI ICDR Regulations have not provided consent, information or any confirmations or undertakings pertaining to themselves which are required to be disclosed as part of the Promoter Group in this Red Herring Prospectus.

10. We have experienced high attrition rate in respect of our Directors and Key Managerial Personnel. In particular, two Chief Financial Officers have resigned in the past one year. We may not be able to retain such persons in future which could adversely affect our business, results of operations, financial conditions and cash flows.