FUTURA POLYESTERS LIMITED - IDBI Capital

Risks Relating to the Issue of Securities:
1. There are restrictions on daily movements in the price of the Equity Shares, which may adversely affect a
shareholder’s ability to sell, or the price at which it can sell, Equity Shares at a particular point in time.
We are subject to a daily “circuit breaker” imposed by all stock exchanges in India, which does not allow
transactions beyond specified increases or decreases in the price of the Equity Shares. This circuit breaker
operates independently of the index-based market-wide circuit breakers generally imposed by SEBI on Indian
stock exchanges. The maximum movement allowed in the price of the Equity Shares before the circuit breaker
is triggered is determined by the Stock Exchange based on the historical volatility in the price and trading
volume of the Equity Shares. The Stock Exchange does not inform us of the triggering point of the circuit
breaker in effect from time to time, and may change it without our knowledge. This circuit breaker limits the
upward and downward movements in the price of the Equity Shares. As a result of this circuit breaker, no
assurance may be given regarding your ability to sell your Equity Shares or the price at which you may be able
to sell your Equity Shares at any particular time.
2. Our stock price may be volatile, and you may be unable to resell your shares at or above the Issue price or at
all.
The market price of our Equity Shares after this Issue will be subject to significant fluctuations in response to,
among other factors:
1 Variations in our operating results and the performance of our business;
2 Adverse media reports about us;
3 Regulatory developments in our target markets affecting us, our clients or our competitors;
4 Market conditions and perception specific to the polyester and perform industry
5 Changes in financial estimates by securities research analysts;
6 Loss of one or more significant clients;
7 The performance of the Indian and global economy;
8 Significant developments in India’s economic liberalization and deregulation policies and the fiscal regime; and
9 Volatility in the Indian and global securities markets.
Many of these factors are beyond our control. There has been recent volatility in the Indian stock markets and
our share price could fluctuate significantly as a result of such volatility in the future.
3. Any future issuance of Equity Shares by us or the issue of stock options under an employee stock option plan
may dilute the investor’s shareholding or adversely affect trading price of the Equity Shares.
Any future issuance of Equity Shares by us or the issue of stock options under an employee stock option plan
where ourCompany issues further Equity Shares could dilute the investor’s shareholding. Additionally, sales of
our Equity Shares by our Promoters or significant shareholders could also have an adverse affect on the trading
price of the Equity Shares. Such events could also impact our ability to raise capital through an offering of our
securities. In addition, any perception by investors that such issuances or sales might occur could also affect the
trading price of the Equity Shares.
Notes to Risk Factors:
1 Issue of 2,62,10,839 Equity Shares with a face value of Rs. 10/- each at par of our Company at par (that is,
Rs. 10/- each) for an amount aggregating to Rs. 2621.08 lacs on rights basis to the existing shareholders of
our Company in the ratio of one Equity Share for every two fully paid Equity Shares held by the shareholders
on the Record Date, that is on [●], 2008. For more details, please refer chapter titled “Terms of the Issue”
beginning on page 221 of the Draft Letter of Offer.
2 All information shall be made available by the Lead Manager and our Company to the existing shareholders
of our Company and no selective or additional information would be available only to a section of the
investors in any manner whatsoever.
3 Net worth as per the Restated Financials as on March 31, 2006, March 31, 2007 and March 31, 2008 was, Rs.
10, 972.36 lacs and Rs. 12,034.89 lacs and Rs. 10,581.21 lacs respectively.
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