Shreni Shares Limited IPO

A significant portion of the company's total revenue from operations is derived from treasury operations of Rs.352.69 million, representing 76.77% of total revenue, Rs. 194.01 million, representing 68.00% of total revenue, Rs.266,86 million, representing 84.28% of total revenue and Rs.94.46 million, representing 79.02% of total revenue, as of nine months period ended December 31, 2025 Fiscal 2025, 2024 and 2023, respectively, and any adverse movement in treasury performance or decline in other key revenue segments could materially and adversely affect our business, results of operations and financial condition.

The Company has been subject to certain penal actions from the Stock Exchanges and regulatory authorities in the past. There can be no assurance that the company will not be subjected to such penalties in the future, which may in turn adversely affect its financial conditions, our operations and profitability.

The company is subject to extensive statutory and regulatory requirements and supervision, which have material influence on, and consequences for, the company's business operations.

The company has discontinued its merchant banking business, which may adversely affect its revenues, growth prospects and business strategy.

The operation of the company's businesses is highly dependent on information technology and the company is subject to risks arising from any failures of, or inadequacies in, the company's IT systems.

Any delay in payment of statutory dues by the Company in future, may result in the imposition of penalties and in turn may have an adverse effect on the Company's business, financial condition, results of operations and cash flows.

The Company had negative cash flow in recent fiscals and sustained negative cash flow from Operating Activities of Rs.91.57 million and Rs.229.31 million in Fiscal 2025 and 2024, respectively, from investing activities of Rs.197.91 million, Rs.252.35 million, Rs.38.71 million and Rs.81.61 million as of the nine months period ended December 31, 2025, Fiscals 2025, 2024 and 2023, respectively, and from Financing Activities of Rs.42.17 million as of the nine months period ended December 31, 2025, which could adversely impact its business, financial condition and results of operations.

The company may extend credit to the company's clients in form of margins for trading and dealing in securities and any default by a client or any downturn in the market could result in substantial losses.

The company is susceptible to risks associated with its branches and authorized person.

The company operates in an intensely competitive environment and the company's ability to succeed and grow is dependent on the company's ability to effectively compete in all aspects of the company's business.