Paint solutions provider Techno Paints plans Rs 500-crore IPO, files draft papers with SEBI

New business data points to the fact that Telangana-based paint solutions provider Technopaints and Chemicals has approached the capital markets by filing a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), planning to mobilize Rs 500 crore through an initial public offering (IPO).

The firm intends to mobilize Rs 325 crore through the issuance of fresh shares, while existing shareholders, including promoters, will sell shares worth Rs 175 crore through an offer-for-sale (OFS).

The firm may consider raising up to Rs 65 crore through a pre-IPO placement before filing the red herring prospectus with the Registrar of Firms. Any amount boosted through the pre-IPO placement will be deducted from the fresh offering component.

Technopaints and Chemicals, promoted by Akuri Srinivasa Reddy and his wife, A Sandhya, executes turnkey paint supply and application projects for real estate developers and builders. In the past, it has undertaken projects for customers such as Prestige, APR Group and Ramky Infrastructure.

In addition to turnkey paint projects, the firm additionally sells products including putties, textures, primers, emulsions and enamels on a standalone basis through direct sales to business-to-business (B2B) customers and through franchisee partners. It had 28 franchisees operating independent retail outlets as of July 2026.

Technopaints and Chemicals plans to utilise Rs 149.1 crore of the net proceeds from the fresh offering to set up a greenfield paints manufacturing and innovation facility, around Rs 80 crore for incremental working capital requirements, and the remaining funds for general corporate purposes.

At present, the firm operates two manufacturing facilities with installed capacities of 1,03,896 MTPA for powder paints, including putties and textures, and 22,199 KLPA for liquid paints, including emulsions, primers and enamels. One of its facilities operates from leased premises and has limited infrastructure for expansion and advanced product development.

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As a result, the firm proposes to consolidate its existing manufacturing operations at Cheriyal and Pashamylaram in Telangana into the new manufacturing facility, which will be partly funded through the fresh offering proceeds.

"The proposed greenfield project is anticipated to have an installed manufacturing capacity of 2,34,000 MTPA for powder paints, and 31,200.00 KLPA for liquid paints," Technopaints and Chemicals stated in its DRHP.

The firm's order book stood at Rs 994.7 crore as of July 2026.

On the financial front, the firm recorded a earnings of Rs 37.8 crore in the year ended March 2026, more than doubling from Rs 16.65 crore in the previous year. Topline from operations additionally grew strongly, rising 68.4 percent to Rs 350.5 crore from Rs 208.1 crore during the same period.

Anand Rathi Advisors has been appointed as the sole merchant banker managing the Technopaints and Chemicals IPO.