RISK IN IPO

A

abhishreshthaa

Abhijeet S
PRIME RISK FACTORS

EXTERNAL RISK FACTORS

  • Immigration restrictions could limit operations in the United States.

  • May face currency exchange risks.


  • Political opposition to outsourcing in US could adversely affect business.


  • Reduction or termination of our tax incentives will increase tax liability.


  • Rising wages could adversely impact business and profitability.


  • Political, economic and social developments could adversely affect business.


  • Terrorist attacks or war or conflicts could adversely affect business.


  • After this offer, the price of Equity Shares may be volatile.


INTERNAL FACTORS:

  • Revenues and profitability may vary significantly from quarter to quarter.


  • Business and profitability may be negatively affected due to changes in technology.


  • Revenues are dependent on clients in the United States.


  • Significant portion of our revenues are depended on limited number of clients.


  • Significant portion of revenues comes from financial services.


  • Success depends on senior management and the ability to retain
    them.


  • Success is dependent on the ability to attract and retain the
    highly skilled professionals.


  • IT services market is highly competitive.


  • Global operations pose complex management, foreign currency, legal, tax and economic risks.


  • Strategic acquisitions may prove to be difficult to integrate and manage.


  • Failing to meet contractual obligations may damage professional reputation.
 
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