Sky Alloys & Power Ltd IPO

Strategic location of Manufacturing Facility.

Integrated steel manufacturer having product portfolio of Sponge iron, MS billets, ferro-alloys, and TMT bars.

Operating history of more than 15 years supported by experienced management.

There are income tax related litigations pending against our Company, some of our Promoters, Promoter Group members, one of our Group Companies and two of our erstwhile Directors, arising from (i) the order of the Settlement Commission dated January 21, 2021 settling demands raised by the Income-tax Department, which is presently under challenge by the Income-tax Department before the High Court of Chhattisgarh, and (ii) separate assessment, appellate and penalty proceedings initiated pursuant to search and seizure operations carried out by the Income-tax authorities at the Registered Office of the Company and other locations in December 2021, in respect of which appellate orders have been passed by the Commissioner of Income Tax (Appeals), Raipur-3 ("CIT(A)") and penalty proceedings in respect thereof. Any adverse outcome in such litigations or any further appeals could increase our tax liability and adversely affect our financial condition.

Our Company has undertaken a capital reduction exercise pursuant to an order passed by the National Company Law Tribunal, Cuttack Bench, resulting in the extinguishment of certain Equity Shares held by a Promoter Selling Shareholder and a Promoter Group member. Any further action or proceedings in relation to the capital reduction exercise may affect our reputation, business operations, financial condition and cash flows.

There are certain discrepancies / errors in some of the forms filed with the Registrar of Companies and other corporate records maintained by the Company in accordance with the provisions of Companies Act, 1956 and the Companies Act, 2013. Any penalty or action taken by any regulatory authorities against the Company in future for noncompliances in relation to such filings and/or records may adversely impact the financial position of the Company.

Since incorporation, our Company has undertaken multiple allotments of Equity Shares at different issue prices. Any action taken by regulatory and/or tax authorities in respect of such allotments may adversely affect our business, financial condition, results of operations and reputation.