Structural Products Manufacturer Renny Strips Files DRHP for IPO; is seeking Rs 300 crore through a fresh share sale

Structural products manufacturer Renny Strips has taken its first formal step towards the capital markets and filed its draft prospectus with the capital markets Sebi India for an initial public offering. The Ludhiana-based company plans to raise up to Rs 300 crore through a fresh issue of shares, along with an offer for sale of up to 1.2 crore shares by existing shareholders.The issuance will be done through the book building route, with the company targeting a listing on both the BSE and NSE. Pantomath Capital Advisors is the sole lead manager of the issue.

Renny Strips was founded as a vertically integrated manufacturer and operates across a large part of the structural products value chain. The product portfolio includes mild steel billets, wire rods, ERW pipes and tubes, as well as design-driven scaffolding and formwork systems. These products are used in the construction, infrastructure, industrial and related sectors.An important area of ​​focus for the company over the past year has been scaffolding and formwork activities. Renny Strips started manufacturing these systems in FY25 and has quickly built a growing export footprint. The company currently supplies scaffolding and formwork systems to more than 21 countries, marking a rapid expansion into global markets shortly after the start of production.

Sustainability also plays a prominent role in the company’s growth trajectory. Renny Strips is commissioning a 22 megawatt solar power plant as part of its efforts to reduce dependence on conventional energy sources and reduce its overall carbon footprint. This move is in line with broader trends among manufacturing companies to improve energy efficiency and manage operating costs in the long term.

According to the draft prospectus, the proceeds from the new issue will mainly be used to finance capacity expansion and balance sheet strengthening. About Rs 175.5 crore has been earmarked for setting up a new manufacturing facility in Ludhiana, also called Proposed Unit IV, which will manufacture scaffolding and formwork systems as well as ERW pipes and tubes. The company also plans to upgrade its existing Unit I and Unit III as part of this expansion plan.

In addition, approximately Rs 55 crore of the issue proceeds will be used for repayment or prepayment of certain outstanding loans, with the remaining funds allocated for general corporate purposes. Management believes that the investments will support future growth, improve operational efficiency and strengthen competitiveness in domestic and export markets. Renny Strips has experienced significant growth in its financial performance over the past three years. Operating revenue rose to Rs 882.19 crore in FY24 from Rs 533.38 crore in FY23. In FY25, sales stood at Rs 856.25 crore. This translates to compound annual revenue growth of approximately 26.7% between FY23 and FY25, despite a slight moderation in revenue in the most recent fiscal year.

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The company’s integrated production model, combined with its expansion into higher value-added scaffolding and formwork systems, has been a key driver of growth. Demand for structural products remains closely linked to infrastructure spending, real estate activity and industrial capital expenditure, all of which have seen continued momentum in recent years.

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