Inox Air Products Limited

• to carry out the Offer for Sale of up to 77,156,663 Equity Shares of face value of ₹1 each, aggregating to ₹[●] million by the Selling Shareholders
• to achieve the benefits of listing the Equity Shares on the Stock Exchanges

Except as stated below, there are no outstanding criminal proceedings, actions by statutory or regulatory authorities, claims relating to direct and indirect taxes, or other pending litigations or arbitration proceedings involving the Company, Directors, Promoters, Key Managerial Personnel, Senior Management, or Group Companies. There are no disciplinary actions imposed by SEBI or Stock Exchanges against Promoters in the last five Fiscals. The Board has adopted a Materiality Policy to identify material outstanding litigation.

• Approximately 76.00% of gas production capacity is operated through On-site facilities located at customer premises, which are dedicated to specific customers and dependent on their continued operation and ability to provide uninterrupted access to utilities.(Customer Concentration & Contractual Risk)

• Top 5 customers contributed more than 20% of revenue from operations for each of Fiscal 2026, 2025, and 2024, and top 10 customers contributed more than 27% of revenue for each of these years.(Customer Concentration & Contractual Risk)

• On-site facilities generate lower revenue relative to their production capacity because revenue from On-site facilities does not recover power costs, unlike Merchant facilities.(Operational Efficiency & Cost Structure)

• Take-or-pay protections in material On-site contracts may not fully mitigate the impact of reduced offtake, delays, or disruptions, and any shortfall could adversely affect business, results of operations, cash flows, and financial condition.(Contractual Risk)

• Disruptions at a customer's site, including operational shutdowns, utility supply failures, accidents, force majeure events, labour issues, regulatory action, or financial distress/insolvency of the customer, may adversely affect On-site operations, reduce or suspend purchases, delay payments, or require cessation of operations.(Operational Risk)

• Assets deployed at On-site facilities are dedicated to the relevant customer and redeployment to an alternative customer is possible only in case of identification of a similar requirement, potentially leading to under-utilisation of assets.(Asset Utilization Risk)

• Future growth depends on the ability to secure new long-term On-site supply contracts, the timing, scale, and terms of which are uncertain and subject to customer capital expenditure plans, industry conditions, and competitive dynamics.(Growth Strategy Risk)

• In 2021, the company experienced an instance of non-renewal of a long-term On-site supply contract upon expiry due to the acquisition of the on-site plant by the customer.(Contractual Risk)