Shreni Shares: what investors need to know before the IPO

Shreni Shares filed its DRHP with SEBI on March 4, 2026, aiming for a mainboard listing on NSE and BSE. This isn't the company's first attempt at going public. That earlier attempt failed. Almost none of the coverage on this IPO mentions it.

What does Shreni Shares Do?

Incorporated on 17 September 2009, Shreni Shares is a SEBI-registered stockbroking and market making firm, Category-I merchant banker and depository participant.

Operational Business Verticals

Being a market maker and stockbroker, Shreni operates following business verticals:

• Treasury Operations & Capital Business: This is the company’s largest revenue stream that involves proprietary trading and equity investments across long and short-term horizons.
• Merchant Banking & Financial Advisory: Under this services division, they deliver end-to-end corporate advisory including SME IPOs, direct listings, open offers, right issue, share valuations and underwriting.
• Market-making Services: Shreni also acts as a SEBI registered market maker on SME exchange platforms, providing two-way price quotes for listed companies.
• Stock Broking & Depository Participant Services: Shreni caters to retail, HNI, UHNI, and institutional clients with equity, derivatives, mutual funds, other financial products and their execution via its digital platforms like Taurus Trader and branch network.
• Margin Trading Facility (MTF): Shreni also offers fund-based lending to investors to leverage trading positions using pledged securities as collateral, generating steady interest income source.

Anomalies

• Shreni Dropped its core revenue generating stream

In FY 2024-2025, the company took a major strategic move by surrendering the company’s Merchant Baking License. This is unusual because in the preceding year (FY 2023-2024), Merchant Banking division had nearly doubled, grew from INR 8.74 Cr to INR 17.68 Cr. Management explained by marking this pivot as “in line with the company strategy” that involves increased focus towards share broking and credit-based trading facilities. Following the decision, the segment was classified under discontinued operations.

• Massive Spike in Professional Fees

In FY 2024-2025, the company recorded an extraordinary surge in professional fees which jumped to INR 12.42 Cr from 2.74 Cr in FY 2023-2024. Management explained the huge spike as a byproduct of high volume of business in the Merchant Banking Segment before its discontinuation.

• Explosive Growth in Margin Trading Facility (MTF)

In FY 2024-25 the company’s loan book underwent a radical shift from no loan on its book in FY 2023-24 (Rs 0.15 lakhs), then company suddenly deployed Rs 25.24 Cr into a Margin Trading Facility. This exposure grew further to Rs 26.52 Cr by March 31 March 2026. This shows a rapid pivot in business operations towards high-volume credit-based trading support.

• High Volatility in Fair value Changes

The company’s bottom line has been heavily influenced by volatile unrealized gains and losses on securities held for trading:

• FY 2023-24: Reported a large unrealized loss of Rs 12.16 Cr
• FY 2024-25: Rebounded with an unrealized gain of Rs. 4.16 Cr
• FY 2025-26: Reported an unrealized gain of Rs. 1.89 Cr

These swings indicate that a significant portion of the company’s profit is influenced by market fluctuations instead of stable fee-based operations.

How does Shreni Makes Money?

Shreni makes money primarily through its operations in the capital markets, focusing on stock broking, market making, and providing credit facilities to its clients.

Revenue Streams

• Brokerage and Transaction Charges

As a registered broker on NSE and BSE, the company earns fees for executing trades in equities, derivatives, and commodities on behalf of its clients.

• Market Making Fee
  Shreni is among top 10 market makers in the SME exchange ecosystem. It receives incentive income from stock exchanges for providing liquidity and maintaining buy-sell quotes for listed SME securities.
• Proprietary Trading Gains

The company deploys its own capital to trade in securities and derivatives and reports income as net gains on fair value changes.

• Interest Income

This is significant income stream for the company where it earns interest by providing a MTF that allows clients to leverage their securities to borrow and trade on margin. It also earns interest on bank deposits.

• Consultancy and Advisory Fees

The company also earns fees for providing research, advisory and consultancy services.

• Merchant Banking Income

This was one of the core revenues generating engine that includes fees from lead management and underwriting for IPO. However, the management discontinued this business vertical to focus on stock broking and credit-based business.

Who are competitors of Shreni?

• Rikhav Securities - the closest listed comparable, and a genuinely useful one: Shreni itself served as Rikhav's market maker for its 2025 IPO. That relationship cuts both ways. It shows Shreni's real standing in the SME market-making ecosystem, and it's also a reminder of how tightly interconnected this small pool of players is - the same names keep showing up as each other's clients, market makers, and comparables.
• Other SME-focused brokers and market makers - a long list of similarly structured small broking houses (SMC Global, Swastika Investmart, VCK Share & Stock Broking, and others) competing for the same pool of SME IPO mandates. Shreni is described as among the top 10 market makers in this specific niche, but the niche itself is fragmented and crowded.
• Larger, established broking houses - the DRHP itself names competition from bigger, better-capitalized players as a stated risk factor. Shreni's scale (8 branches, ~2,620 clients) is meaningfully smaller than the broader retail broking industry it competes in outside the SME niche.

Comparative Analysis