Anlon Healthcare IPO

Strong product portfolio of more sixty-five (65) commercialised products, twenty-eight (28) products at pilot stage, forty-nine (49) products at lab testing stage.

Scalable business model.

Established customer base.

Operating in high entry and exit barriers due to long customer approval cycles and strict product standards.

In-house testing, QA / QC for quality control of the product portfolio.

Experienced Promoters and Management Team.

The company is subject to stringent quality specifications and regular customer audits. Non-compliance may result in order cancellations, warranty claims, or reputational damage. In the past, its manufacturing facility was non-operational for a period of four (4) months to address certain directions and recommendations issued by the Brazilian Health Regulatory Agency, which temporarily halted the company manufacturing operations.

Any failure to maintain product quality or comply with evolving quality standards may lead to customer dissatisfaction, loss of business, and legal liability.

The company has a limited operating history in manufacturing.

In the past, the company Manufacturing Facility remained non-operational for a period of four (4) months, resulting in a halt in its manufacturing capabilities. Any future event that causes a temporary or prolonged shutdown of the company Manufacturing Facility could significantly impact its production capacity, disrupt the copmpany supply chain, and adversely affect its business operations.

The Company is yet to place orders for the equipment, plant and machinery for the expansion of the Manufacturing Facility. Any delay in placing orders or procurement of such equipment, plant and machinery may delay the schedule of implementation and possibly increase the cost of commencing operations.

The company is products are exposed to risks of contamination, adulteration, and tampering during manufacturing, storage, or transit, which may adversely impact product quality, lead to regulatory non-compliance, and result in reputational and financial loss.

The company exposed to risks of product recalls and liability claims, which may involve significant costs, reputational harm, and regulatory consequences.

Its revenue from operations is dependent upon a limited number of customers and the loss of any of these customers or loss of revenue from any of these customers could have a material adverse effect on the company business, financial condition, results of operations and cash flows.

Its derive majority of the company revenue from the sale of its products to various segments of pharmaceutical Industry and any reduction in demand for the company customer products, or if such products become obsolete due to a breakthrough in the development of alternate drugs, could have an adverse effect on the company business.

Comparison of the comapny valuation multiples with peer companies may highlight potential investment risks.

The company derive a significant portion of its revenue from the company operations in India. A reduction in demand for our products in domestic market could adversely affect its business, results of operations, financial conditions and cash flows.

Delays in Obtaining Necessary Drug Master File (DMF) approvals may adversely affect its business and financial performance.

Its exposed to credit risk from the company customers and the recoverability of the company trade receivables is subject to uncertainties.

The company has experienced negative cash flows and significant fluctuations in the past, and the company net cash flows from operating activities in Fiscal 2025 have shown a sharp increase.

The company is operate out of a single Manufacturing Facility, located at Rajkot, Gujarat which exposes its operations to potential geographical concentration risks arising from local and regional factors which may adversely affect the company operations and in turn its business, results of operations and cash flows.

The company as an Indian API manufactures faces certain risk associated with manufacturing of API including intense competition from low-cost imports, primarily from China, which accounts for nearly two-thirds of India`s API imports.

The company does not have long-term purchase agreements with the company customers, and its dependence on short-term purchase orders exposes us to fluctuations in order volumes, which may adversely affect the company is business operations, financial condition, and revenue predictability.

None of the Directors of the Company have experience of being a director of a public listed company.

Its rely on a limited number of suppliers for the company raw materials who are highly concentrated in the western region of India. Dependence on few suppliers for raw materials may require it to procure them from other suppliers at higher cost and cause operational interruptions and affect the company is delivery capacity leading to loss of production and under-utilization of capacity. Its also does not have long-term supply agreements with the company raw material suppliers which may adversely affect its business, results of operations, and financial condition.

The company is operations are dependent on continuous effort to develop and commercialize new products and its inability to identify and understand evolving industry trends, technological advancements, customer preferences and develop new products to meet the company customers` demands may adversely affect its business.

Its domestic and export sales are concentrated in a limited number of states and countries, which exposes it to region-specific, operational, and geopolitical risks.

The Company has incurred losses in the recent past and in case its incur losses in the future, it will have an adverse impact on the company business prospects.

Any surplus production and failure to manage inventory could adversely affect the company business, results of operations and financial condition.

If final products containing its intermediates cause, or are perceived to cause, severe side effects, the sale of such products may decrease or may be banned, which may have an adverse effect on the company revenues and profitability.

Disruption in our relationships with third party distributors, changes in their business practices, their failure to meet payment schedules and provide timely and accurate information could adversely affect its business, operating cash flows and financial condition

The company debt-equity ratio is significantly higher than that of its listed peers, which may expose it to higher financial risk and impact the company profitability and flexibility.

Credit Ratings issued by credit rating agencies may not accurately reflect its creditworthiness and could negatively influence investors` perception.

Under-utilization of the company manufacturing capacities and an inability to effectively utilize its expanded manufacturing capacities could have an adverse effect on the company business, future prospects and future financial performance.

The company is dependent on the company is Promoters for functioning of its business and the company believe that its senior management team and other key managerial personnel in the company business are critical to its continued success and the company may be unable to attract and retain such personnel in the future.

Its may face several risks associated with the Proposed Expansion, which could hamper the company growth, prospects, cash flows and business and financial condition.

The company may face several risks associated with the construction of the building forming a part of the Proposed Expansion, which could hamper the company is growth, prospects, cash flows and business and financial condition.

The company does not own some of the premises from where its operate.

The business is working capital intensive. If the company unable to borrow to meet its working capital requirements, it may materially and adversely affect the company business and results of operations.

There are outstanding legal proceedings involving us.

The company operate in a hazardous industry and are subject to certain business and operational risks consequent to its operations, such as, the manufacture, usage and storage of various hazardous substances which may adversely affect the company business, results of operations and financial condition.

A portion of the company revenues are denominated in foreign currencies. As a result, its exposed to foreign currency exchange risks which may adversely impact the company results of operations.

The company face competition from both domestic as well as multinational corporations and its inability to compete effectively could result in the loss of customers, hence, the company market share, which could have an adverse effect on its business, results of operations, financial condition and future prospects.

The company is dependent on third party transportation and logistics service providers. Any increase in the charges of these entities could adversely affect its business, results of operations and financial condition.

The company insurance coverage may not be sufficient or adequate to protect us against all material hazards, which may adversely affect its business, results of operations, financial condition and cash flows.

The company is required to obtain, renew or maintain certain material statutory and regulatory permits and approvals required to operate its business, and if the company fail to do so in a timely manner or at all, its may be unable to operate the company business and its results of operations may be adversely affected.

The Company intends to utilize a portion of the Net Proceeds of the Issue towards the working capital requirements of the Company which are based on certain assumptions and estimates and have not been appraised by any bank or financial institution.

There were certain instances of irregularities, discrepancies and non-compliances with respect to certain corporate actions taken by the Company in the past. These include, among others, an instance where funds raised through a private placement were not transferred to a separate bank account and were utilised for business purposes prior to the allotment of shares under the said private placement. Consequently, Its may be subject to regulatory actions and penalties.

There are certain instances of delays in payment of statutory dues relating to Goods and Service Tax and Employees Provident Fund and Miscellaneous Provisions Act, 1952. Any delay in payment of statutory dues or non-payment of statutory dues in dispute may attract financial penalties from the respective government authorities, which may have an adverse impact on its financial condition and cash flows.

The Company`s Directors or Promoters have entered into ventures that may have potential conflicts of interest with its business.

The company has contingent liabilities and its financial condition could be adversely affected if any of these contingent liabilities materializes. In the past, the company contingent liability have exceeded 10% of our profit after tax.

The Company has availed certain unsecured borrowings which are repayable on demand. Any such demand may adversely affect its business, cash flows, financial condition and results of operations.

Failure to maintain the confidentiality of the company technical knowledge could undermine its competitive advantage.

The company has in the past entered into a number of related party transactions and may continue to enter into related party transactions in the future on an arm`s length basis, and there can be no assurance that its could not have achieved more favourable terms if such transactions had not been entered into with related parties.

The company lenders have charge over its movable and immovable properties in respect of finance availed by it.

The company is subject to restrictive covenants under its financing agreements that could limit the company flexibility in managing its business or to use cash or other assets. Any defaults could lead to acceleration of the company repayment obligations, cross defaults under other financing agreements, termination of one or more of the company financing agreements or force it to sell the company assets, which may adversely affect its cash flows, business, results of operations and financial condition.

Its may not be able to adequately protect the company intellectual property, which could harm the value of its brand and services.

The company has issued equity shares in the last 12 months at a price that may be lower than the Issue Price.

An inability to effectively manage the company growth and expansion may have a material adverse effect on its business prospects and future financial performance.

If the company unable to establish and maintain effective internal controls and compliance system, its business and reputation could be adversely affected.

Certain sections of this Red Herring Prospectus disclose information from the D&B Report which has been commissioned and paid for by us exclusively in connection with the Issue and any reliance on such information for making an investment decision in the Issue is subject to inherent risks.

The company is dependent on third parties for the supply of utilities, such as water, gas and electricity, at the company manufacturing facilities and any disruption in the supply of such utilities could adversely affect its manufacturing operations.

The company may be unable to attract and retain employees with the requisite skills, expertise and experience, which would adversely affect its operations, business growth and financial results.

The company is funding requirements and the proposed deployment of Net Proceeds have not been appraised by any bank or financial institution or any other independent agency and its management will have broad discretion over the use of the Net Proceeds.

Changes in technology may affect the company business by making its manufacturing unit or equipment less competitive or obsolete.

The company operations may be materially adversely affected by strikes, work stoppages or increased compensation demands by its employees.

Failure or disruption of the company is information and technology ("IT") and/ or enterprise resources planning systems may adversely affect its business, financial condition, results of operations and future prospects.

Any variation in the utilization of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders` approval.

Its rely on contractors for the recruitment of contract labourers for non-core tasks and are therefore exposed to execution risks and liability towards labourers under applicable Indian laws.

The company Promoters and members of the Promoter Group will continue jointly to retain majority control over its Company after the Issue, which will allow them to determine the outcome of matters submitted to shareholders for approval.

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

The company is ability to pay dividends in the future will depend upon its future earnings, financial condition, cash flows, working capital requirements, capital expenditure and restrictive covenants in its financing arrangements.

The company Promoters, some of its Directors, some of the company KMPs and SMPs are interested in Its Company, in addition to regular remuneration or benefits and reimbursement of expenses.

Information relating to the installed manufacturing capacity of its Manufacturing Facility included in this Red Herring Prospectus are based on various assumptions and estimates and future production and capacity may vary.

The company is could be harmed by employee misconduct or errors that are difficult to detect and any such incidences could adversely affect its financial condition, results of operations and reputation.

Any future issuance of Equity Shares, or convertible securities or other equity linked securities by the Company may dilute your shareholding and any sale of Equity Shares by its Promoters or members of the company Promoter Group may adversely affect the trading price of the Equity Shares.

Rights of shareholders under Indian laws may be more limited than under the laws of other jurisdictions.

QIB 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.

The company has in this Red Herring Prospectus included certain non-GAAP financial measures and certain other industry measures related to its operations and financial performance. These non-GAAP measures and industry measures may vary from any standard methodology that is applicable across the industry, and therefore may not be comparable with financial or industry related statistical information of similar nomenclature computed and presented by other companies.

Subsequent to the listing of the Equity Shares, its may be subject to surveillance measures, such as the Additional Surveillance Measures and the Graded Surveillance Measures by the Stock Exchanges in order to enhance the integrity of the market and safeguard the interest of investors.

The company has re-filed the Offer Document with SEBI and Stock Exchanges as the earlier DRHP was returned by SEBI for non-compliance with SEBI (ICDR) Regulations.

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.

The Issue price of the company Equity Shares may not be indicative of the market price of its Equity Shares after the Issue and the market price of the company Equity Shares may decline below the Issue Price and you may not be able to sell your Equity Shares at or above the Issue Price.

Fluctuation in the exchange rate between the Indian Rupee and foreign currencies may have an adverse effect on the value of the company Equity Shares, independent of its operating results.