Telangana-based paint solutions provider Technopaints and Chemicals has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), planning to raise ₹500 crore through an initial public offering. According to reports from Moneycontrol, the company intends to raise ₹325 crore through the issuance of fresh shares, while existing shareholders, including promoters, will sell shares worth ₹175 crore through an offer-for-sale. The company may consider raising up to ₹65 crore through a pre-IPO placement before filing the red herring prospectus with the Registrar of Companies. Promoters Akuri Srinivasa Reddy, A Sandhya, Akuri Sakesh Reddy, Akuri Deepthi and K Sivareddy are among the selling shareholders, along with Satyanarayana Reddy Akuri, Anil Kondoth, Dantuluri Krishna Harish Varma, Venkata Lakshmi Narasimha Murthy Chilla and Arjun Nagulapally.
The company plans to utilise ₹149.1 crore of the net proceeds from the fresh issue to establish a greenfield paints manufacturing and innovation facility at Ibrahimpatnam, Telangana, as reported by Moneycontrol. Additionally, around ₹80 crore will be allocated for incremental working capital requirements, with the remaining funds for general corporate purposes. Currently, the company operates two manufacturing facilities with installed capacities of 1,03,896 MTPA for powder paints and 22,199 KLPA for liquid paints. The proposed greenfield project will have an installed manufacturing capacity of 2,34,000 MTPA for powder paints and 31,2,000 KLPA for liquid paints, consolidating existing operations at Cheriyal and Pashamylaram in Telangana. One of the existing manufacturing facilities operates from leased premises and has limited room for further expansion and advanced product development. Anand Rathi Advisors has been appointed as the sole merchant banker managing the Technopaints and Chemicals IPO, while KFin Technologies serves as the registrar.
According to the DRHP filed with SEBI, Technopaints and Chemicals undertakes turnkey paint supply and application projects across key real estate and industrial segments, having executed more than 1,150 projects covering over 1,450 million sq ft across seven states. The company 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. As reported by Moneycontrol, the company had 28 franchisees operating independent retail outlets as of July 2026. The company has worked with customers including Prestige, APR Group and Ramky Infrastructure. Its operations include turnkey paint supply and application contracts, under which the company provides both the required paint products and execution services, giving Technopaints exposure to construction and real estate activity. The company's order book stood at ₹994.7 crore as of July 2026, providing visibility into its pending project work.
On the financial front, the company recorded a profit after tax of ₹37.8 crore for fiscal 2026, more than doubling from ₹16.65 crore in the previous year, as reported by Moneycontrol. Revenue from operations also grew strongly, rising 68.4 percent to ₹350.5 crore from ₹208.1 crore during the same period. However, the company remains significantly dependent on its turnkey projects business, with turnkey paint projects contributing 91.25% of revenue in fiscal 2026, compared with 89.20% in fiscal 2025 and 81.81% in fiscal 2024. Geographic concentration remains high, with Telangana accounting for 99.59% of revenue from turnkey projects in fiscal 2026, compared with 97.88% in fiscal 2025. Customer concentration is also significant, with the top 10 customers contributing 81.90% of revenue in fiscal 2026.
