Objects of issue parks.

These effects could be

particularly pronounced during
The object of the issue is to periods of economic
reduce debt by | 330 crore. contraction, bad weather or
epidemics. In addition, high
debt on the company’s balance
sheet could further adversely
impact the company’s
profitability.
Key risks
and
concerns
S
calability issues
due to highly
leveraged balance
sheet

The company
operates in a
capital-intensive
industry with
relatively long
gestation period. A
highly leveraged
balance sheet will
restrict finance
availability for the
company or lead to
higher interest
cost and
unfavourable
financial
arrangements. If
the company plans
to raise funds
through equity it
could significantly
affect financial
measures such as
earnings per share.

High fixed cost

structure, debt
restricts pat
margin
expansion

A large portion
of the
company’s
expenses like
cost of full-time
employees,
operations and
maintenance
costs, interest
costs, security
and insurance
are relatively
fixed and do not
vary due to
attendance at
 Exhibit 7: Objects of issue
Estimated mount to be Propo
SNo Particulars Cost deployed

1 Partial repayment or pre-payment of consortium 330.0 330.0

loan
2 General corporate purposes [●] [●] [●]
Total [●] [●] [●]

Source: RHP, ICICIdirect.com Research