Acetech E-Commerce IPO

There are certain discrepancies / errors noticed in some of its corporate records relating to forms filed with the Registrar of Companies and other provisions of Companies Act, 1956 / 2013. Any penalty or action taken by any regulatory authorizes in future for non-compliance with provisions of corporate and other law could impact the financial position of the Company to that extent.

The company operates in a highly competitive e-commerce industry characterised by low entry barriers, aggressive pricing, and rapid product substitution. Larger, well-capitalised competitors may outspend the company on customer acquisition, warehousing, and fulfilment, while smaller agile players may capture niche trends faster than the company cans.

Non-compliance with the Digital Personal Data Protection Act, 2023 may expose the Company to monetary penalties, regulatory actions and reputational risks, and ensuring compliance may increase its operational and compliance cost

Exposure to Consumer Protection (E-Commerce) Rules, 2020 and Proposed Amendments may increase the Company`s legal, operational and financial exposure, and any non-compliance may result in penalties, enforcement actions or reputational risks

The Company may be exposed to Financial Risks associated with Invesments in Unidentified Acquisitions

The deployment of funds raised through this Offer shall not be subject to any Monitoring Agency and shall be purely dependent on the discretion of the management of the Company.

One of the logos of the company`s product category is not registered with Registrar of Trademark; any infringement of the company`s brand name or failures to get it registered may adversely affect its business. Further, any kind of negative publicity or misuse of the company`s brand name could hamper its brand building efforts and the company`s future growth strategy could be adversely affected.

The objects of the Offer have not been appraised by any bank or financial institution, and the company cannot assure you that the objects of the Offer will be achieved within the expected time frame, or at all, and any variation in the utilization of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders` approval.

The company`s business is subject to risks relating to delayed collections or defaults by customers, which may result in increased working capital requirements and impact its profitability.

There are no alternate arrangements for meeting the company`s requirements for the Objects of the Issue. Any shortfall in raising / meeting the same could adversely affect its growth plans, operations and financial performance.

The company`s business is operating under various laws which require us to obtain approvals from the concerned statutory/regulatory authorities in the ordinary course of business and the company`s inability to obtain, maintain or renew requisite statutory and regulatory permits and approvals for the company`s business operations could materially and adversely affect its business, prospects, results of operations and financial condition.

The company may not be successful in implementing its business strategies.

The company`s future funds requirements, in the form of fresh issue of capital or securities and/or loans taken by the company, may be prejudicial to the interest of the shareholders and lenders depending upon the terms on which they are eventually raised.

The objects of the Fresh Issue and deployment of funds are based on management estimates and have not been appraised by any external independent agency.

The average cost of acquisition of Equity Shares by the Promoters is less than the Offer Price.

The company has entered related party transactions in the past and may continue to do so in the future.

The company`s Key Managerial Personnel do not have prior experience in managing the affairs of a listed company, which may impact the company`s ability to comply with regulatory requirements.

The company`s Key Managerial Personnel ("KMP") have been associated with the Company for less than a year, which may pose challenges in terms of understanding its business operations and industry.

The company may be subject to claims of intellectual property infringement, misappropriation, or violation of third-party rights in connection with products, brands, or content on the company`s platforms.

The company`s business model relies on sustained consumer appetite for trending products, and customer fatigue or trend saturation could materially reduce demand and undermine its growth strategy.

The company`s reliance on algorithms, analytics, and digital platforms for product discovery and visibility exposes us to risks of systemic change, reduced competitiveness, and loss of sales momentum.

The company`s reputation and customer trust could be materially harmed if products sold through its platforms are found to be unsafe, defective, or of poor quality.

The company`s success is significantly dependent on the judgment and involvement of the company`s promoters and key personnel, and any loss of their services may materially affect its business.

There is no guarantee that the Equity Shares issued pursuant to the Issue will be listed on exchange in a timely manner or at all.

Industry information included in this Red Herring Prospectus has been derived from publicly available industry reports and/or websites. There can be no assurance that such third-party statistical financial and other industry information is either complete or accurate.

The Equity Shares have never been publicly traded, and, after the Issue, the Equity Shares may experience price and volume fluctuations, and an active trading market for the Equity Shares may not develop. Further, the price of the Equity Shares may be volatile, and you may be unable to resell the Equity Shares at or above the Issue Price, or at all.

There are restrictions on daily weekly monthly movement in the price of the equity shares, which may adversely affect the shareholder`s ability to sell for the price at which it can sell, equity shares at a particular point in time.

You may be subject to Indian taxes arising out of capital gains on the sale of the Equity Shares.

Changing regulations in India could lead to new compliance requirements that are uncertain. The regulatory environment in which the company operates is evolving and is subject to change.

QIBs and Non-Institutional Investors are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage after submitting a Bid, and Individual Bidders, who applies for minimum application size, are not permitted to withdraw their Bids after Bid/Offer Closing Date.

In the event there is any delay in the completion of the Issue, or delay in schedule of implementation, there would be a corresponding delay in the completion of the objects of this Offer which would in turn affect the company`s revenues and results of operations.