Lykis Limited has issued a comprehensive cautionary statement regarding deteriorating external conditions that may significantly impact its business operations and financial performance. The Mumbai-based global supplier of FMCG, cosmetics, and raw material/packaging products released this warning on January 22, 2026, under Regulation 30 of SEBI listing requirements.

Economic Pressures and Cost Inflation

The company is confronting an increasingly adverse global economic environment characterized by multiple headwinds. Key challenges include sustained inflation, rising operating costs, and weakening consumer demand across several international markets. The impact on operational efficiency is detailed below:

Foreign Exchange and Market Volatility

Foreign exchange volatility has intensified in key export regions, particularly affecting emerging economies. Currency depreciation and instability present multiple risks to the company's international operations. These challenges may result in lower export realizations, pricing difficulties, increased hedging costs, and potential losses on receivables, ultimately impacting cash flows.

Geopolitical and Security Risks

Lykis Limited faces heightened geopolitical and security risks across its operational markets. The company specifically highlighted concerns in African and developing markets, where political instability, civil unrest, and armed conflicts have already created operational disruptions:

• Shipment delays and border disruptions
• Rising insurance costs
• Higher operational risks
• Potential for further escalation

Infrastructure and Regulatory Challenges

Infrastructure and logistics conditions in several markets remain problematic, with persistent issues affecting business operations. The company identified multiple constraints that could impact performance:

These constraints may lead to execution failures, customer dissatisfaction, loss of contracts, and reduced competitiveness in international markets.

Financial and Credit Risk Exposure

From a financial perspective, Lykis Limited is experiencing increasing counterparty and credit risks. The company faces challenges including delayed payments and higher probability of customer defaults in certain markets. These issues may place significant strain on working capital, liquidity, and overall balance sheet strength.

The company operates across jurisdictions with frequently changing regulatory and trade policies, where sudden modifications in import/export rules, taxation, tariffs, foreign exchange controls, or sanctions could result in blocked shipments, higher compliance costs, or restricted market access.

Outlook and Risk Assessment

Lykis Limited cautioned that future revenues, margins, and growth prospects remain highly uncertain due to these structural challenges. The company emphasized that business performance may remain volatile and unpredictable in the near to medium term. Many of these risks are structural and beyond the company's control, potentially affecting shareholder value materially and adversely.

While the company will continue monitoring these developments, the cautionary statement underscores the challenging operating environment facing businesses with significant international exposure in the current global economic climate.

Lykis Limited has received the Draft Letter of Offer (DLOF) dated January 2, 2026, from Parshav Vatika LLP and persons acting in concert (PACs) for the mandatory open offer. The company disclosed receiving the DLOF from lead manager Srujan Alpha Capital Advisors LLP, marking the next formal step in the acquisition process following the detailed public statement publication.

Open Offer Schedule and Timeline

The tentative schedule outlines key milestones for the acquisition process:

The tendering period is scheduled for 10 working days, with the offer opening on Wednesday, February 11, 2026, and closing on Wednesday, February 25, 2026.

Manager and Registrar Contact Details

The open offer will be managed by designated intermediaries with specific contact information:

Registrar to the Offer

Purva Sharegistry (India) Private Limited serves as the registrar:

Acquisition Structure and Terms

The open offer maintains the previously announced structure and pricing:

Parshav Vatika LLP (Acquirer), along with K8 Products LLP (PAC1) and Tidagela Ventures Private Limited (PAC2), continues the mandatory acquisition triggered by the substantial shareholding purchase.

Regulatory Process and Next Steps

The Draft Letter of Offer filing initiates the final phase of regulatory approval. SEBI has up to 21 working days to provide observations on the draft document. Following SEBI's clearance, the final Letter of Offer will be dispatched to all eligible public shareholders whose names appear in the company's register on the identified date of January 28, 2026.

The acquirer has deposited ₹4.40 crores in the escrow account, representing more than 25% of the total consideration payable, ensuring adequate financial arrangements for the open offer completion.