Shreni Shares Limited IPO

01At a glance

What the company does: stockbroking, margin trading finance and market making for shares listed on SME exchanges, through 8 branches in 7 cities, 6 authorised persons and online platforms (DRHP p.28). It surrendered its merchant-banking licence in April 2025 (DRHP p.41).

Who pays it: mostly the market: income from treasury operations, the company's own trading, was 76.77% of revenue in the nine months to December 2025; broking fees, market-making fees and margin-funding interest made up most of the rest (DRHP p.40).

Why it is raising money: ₹570.00 million for working capital, ₹80.00 million to repay borrowings, and the rest for general purposes (DRHP p.29).

How fast it has grown: revenue was ₹119.54 million in FY23, ₹316.62 million in FY24, ₹285.29 million in FY25 and ₹459.38 million in the nine months to December 2025 (DRHP p.31).

The one thing to understand: results swing with trading gains. Treasury income was ₹266.86 million in FY24, ₹194.01 million in FY25 and ₹352.69 million in nine months (DRHP p.40). The company cites the D&B report for being among the top 10 market makers on SME exchanges, with 37 mandates handled over FY23 to FY25 (DRHP p.28).

02The business, in plain words

A broker executes clients' trades for a fee and lends against their holdings. A market maker commits to quote two-way prices in a newly listed small company's shares, holding an inventory of them, and earns a market-making fee; gains or losses on its own positions count as treasury income.

An SME company lists on an exchange's SME platform → it appoints Shreni as market maker → Shreni holds shares and posts two-way quotes → it earns a market-making fee plus any gain or loss on the shares it trades.

Earnings equation: Profit ≈ trading gains on own positions + broking and market-making fees + margin-funding interest − staff and other costs. Profit was 65% of revenue in the nine months (our arithmetic, DRHP p.31).

03Where the money comes from

Source: DRHP p.40. 9M FY26 is nine months to December 2025; the total includes small other income lines.

04The growth record

Source: DRHP p.31, DRHP p.32. 9M FY26 is nine months; balance-sheet figures are at period end.

05What the growth is made of

Mostly trading gains, which rose in FY24, fell in FY25 and rose again in the nine months (DRHP p.40). Market-making fees grew from ₹3.73 million in FY23 to ₹38.88 million in nine months (DRHP p.40). Broking fees fell from ₹59.33 million in FY25 to ₹29.07 million in nine months (DRHP p.40); the merchant-banking business ended in April 2025 (DRHP p.41).

06Earnings quality

Operating cash flow was negative ₹229.31 million in FY24 and ₹91.57 million in FY25, and investing cash flow was negative in every period (DRHP p.33). The statutory auditors have no qualifications that were not given effect in the restated statements (DRHP p.32).

In 2021 SEBI levied a ₹0.3 million penalty on the company in proceedings covering misuse of client funds, client funding, risk-based supervision, weekly monitoring data, client registration and net-worth verification, which the company paid (DRHP p.41). In 2022 SEBI warned it over due diligence as merchant banker to an open offer in IO System Limited (DRHP p.41).

Other income was ₹1.30 million in FY25, 0.6% of profit before tax of ₹228.43 million (our arithmetic, DRHP p.73).

07The balance sheet

Net worth rose from ₹205 million in March 2023 to ₹1,688 million in December 2025, much faster than profit: FY24 and FY25 profit totalled ₹364 million while net worth rose ₹1,211 million, and share capital rose from ₹99.94 million to ₹530.32 million (our arithmetic, DRHP p.31, DRHP p.32). The pages read do not give the terms of the shares issued.

08What the money is for

Source: DRHP p.29.

A pre-IPO placement may reduce the offer (DRHP p.28).

09Who is selling

Source: DRHP p.29, DRHP p.30. They offer up to 8,200,000 shares in all, more than the 6,900,000 new shares (DRHP p.28). The split and acquisition costs were not read for this study.

The shares offered are up to 2,000,000 by Hitesh Natvarlal Punjani and 2,000,000 by Nidhi Bhavesh Shah as promoters, and up to 1,394,800 by Nirmal Himmatlal Shah and 2,805,200 by Sapna Bhavesh Shah as promoter group (DRHP p.1).

10Promoters

The promoters are Bhavesh Himmatlal Shah, 58, chairman, managing director and chief executive; Hitesh Natvarlal Punjani, 52, whole-time director; and Nidhi Bhavesh Shah, 32 (DRHP p.234).

Remuneration paid to the three promoters was ₹11.28 million in FY23 and ₹7.88 million in FY25 (our arithmetic, DRHP p.35).

11Who already owns it

Source: DRHP p.29.

Promoters hold 53.48% and the promoter group 17.65% (DRHP p.29). The next largest holder is Ila Nirmal Shah at 4.15% (DRHP p.30).

12What changed just before the IPO

• Merchant banking: licence surrendered in April 2025 (DRHP p.41).
• Market making: fees up sharply in the nine months (DRHP p.40).
• Margin funding: a new income line from FY25 (DRHP p.40).
• Capital: share capital up more than fivefold since March 2023 (DRHP p.31).

The company issued bonus shares at one for every one held on May 05, 2023 and again on August 26, 2024 (DRHP p.89, DRHP p.94). It placed 5,000,000 shares privately at ₹80 each on October 27, 2023 (DRHP p.89), and its last allotment before the offer was a private placement of 3,056,000 shares at ₹120 each on February 20, 2025 (DRHP p.101). It became a public company, with a fresh certificate of incorporation dated May 26, 2023 (DRHP p.77). The statutory auditor changed in 2023, from Mehul M Shah & Co. to J. D. Shah Associates (DRHP p.79).

13Capacity and expansion

A broker's capacity is capital: the proceeds add working capital (DRHP p.29).

14Market size and industry structure

The D&B report cited in the offer document says BSE market capitalisation grew from ₹101.5 lakh crore in FY15 to ₹412.9 lakh crore in FY25, and NSE's from ₹99.3 lakh crore to ₹410.9 lakh crore (DRHP p.28). newboard has not tested the report's statements.

15Competitive position

What the document claims, and what it rests on:

• A top-10 SME market maker, citing D&B (DRHP p.28).
• Integrated broking, margin funding and market making (DRHP p.28).

Against that: dependence on its own trading results, a past SEBI penalty and warning, and an intensely competitive broking market (DRHP p.33, DRHP p.41).

16Peers the company named

Source: DRHP p.135. Peer P/E uses prices on 27 February 2026. The peer table gives the company's FY25 revenue as ₹286.60 million against ₹285.29 million in the summary (DRHP p.31, DRHP p.135).

No P/E is possible for the company until a price band is set.

17Risks, in plain words

• Trading. Most revenue comes from the company's own positions (DRHP p.32).
• Regulation. Past penal actions by SEBI and exchanges (DRHP p.32, DRHP p.41).
• Merchant banking. A business line ended in 2025 (DRHP p.32).
• Cash. Negative operating cash flow in FY24 and FY25 (DRHP p.33).
• Client credit. Margin lending can go bad in a market fall (DRHP p.33).
• Competition. An intensely competitive industry (DRHP p.33).

18Litigation and regulatory matters

Source: DRHP p.32. No proceedings are listed against the promoters or directors (DRHP p.32).

19Related-party transactions

Not read in detail for this study.

20What the offer document does not say

In the sections read for this study, the document does not give:

• What positions produced the treasury income, and how much came from shares of SME companies where it is market maker, in the pages read.
• Losses in weaker periods on its own positions, beyond the annual totals.
• The terms of the shares issued in FY24 and FY25, in the pages read.
• Why the merchant-banking licence was surrendered, beyond a strategic decision.
• The price band, lot size or issue dates, which is normal at DRHP stage.

21Five questions for management

1. How much of treasury income comes from trading in shares of companies where it is the market maker?
2. What risk limits apply to the company's own trading?
3. Why was the merchant-banking licence surrendered after the SEBI warning?
4. Who took up the shares issued in FY24 and FY25, and at what prices?
5. Why are the selling shareholders offering more shares than the company is issuing?

1Sources and cited facts

This study was read from 1 document the company filed. The 56 figures it cites are listed under the document each came from, with the page and the sentence as printed.