Renny Strips Limited, a Ludhiana-based manufacturer of steel products, has filed its Draft Red Herring Prospectus with the Securities and Exchange Board of India to raise funds through an initial public offering. The company is engaged in the production of wire rods, hot-rolled coils, ERW pipes and tubes, and scaffolding solutions. Pantomath Capital Advisors has been appointed as the merchant banker for the proposed issue.
IPO Structure
The planned IPO includes a fresh issue of equity shares aggregating up to ₹300 crore, along with an offer-for-sale of up to 1.2 crore equity shares by promoters Dev Raj Gupta and Usha Gupta. In addition, the company may undertake a pre-IPO placement of up to ₹60 crore, subject to regulatory approvals, before filing the Red Herring Prospectus with the Registrar of Companies.
Utilisation of Funds
Funds raised through the fresh issue are proposed to be largely directed towards capacity expansion initiatives. Approximately ₹175.5 crore is earmarked for the establishment of a new manufacturing unit (Unit IV) in Ludhiana, Punjab. This facility will focus on the production of scaffolding and formwork systems, along with ERW pipes and tubes, and will also support upgrades at the existing Unit I and Unit III.
A further ₹55 crore is proposed to be used for partial repayment of outstanding borrowings, which stood at ₹370.7 crore. The remaining proceeds will be allocated towards general corporate purposes.
Company Profile and Financial Performance
Founded in 1996, Renny Strips operates three manufacturing facilities in Ludhiana and offers a diversified portfolio exceeding 1,000 stock-keeping units as of September 2025. The company operates in the same segment as listed players such as Hari Om Pipe Industries, Rama Steel Tubes, Sambhv Steel Tubes, and Technocraft Industries.
For the six months ended September 2025, the company recorded revenue of ₹487.8 crore with a net profit of ₹23.7 crore. In FY25, net profit increased by 71.4% year-on-year to ₹19.7 crore, compared with ₹11.5 crore in the previous fiscal, while revenue declined marginally by 3% to ₹856.2 crore from ₹882.2 crore.
Summary
Renny Strips has filed its DRHP with SEBI to launch a ₹300 crore IPO comprising a fresh issue and an offer-for-sale by promoters. The company plans to use the proceeds primarily for capacity expansion, setting up a new manufacturing unit in Ludhiana, upgrading existing facilities, and reducing debt, while continuing operations across its three plants with a broad product portfolio.
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