Divya Agarwal
New Delhi [India], September 30: Technopaints and Chemicals has filed draft papers with the Securities and Exchange Board of India (SEBI) to raise up to Rs 500 crore through an initial public offering (IPO).
According to the draft red herring prospectus (DRHP), the proposed issue comprises a fresh issue of shares worth up to Rs 325 crore and an offer for sale (OFS) of up to Rs 175 crore by existing shareholders, including the promoters.
The company may also consider a pre-IPO placement of up to Rs 65 crore before filing its red herring prospectus with the Registrar of Companies. If the pre-IPO placement is completed, the amount raised will be deducted from the fresh issue.
The company plans to utilise around Rs 149.1 crore from the fresh issue proceeds to set up a greenfield paints manufacturing and innovation facility at Ibrahimpatnam, Telangana. Another Rs 80 crore will be used to part-fund incremental working capital requirements, while the remaining proceeds will be deployed for general corporate purposes.
The proposed facility is expected to have an installed capacity of 2,34,000 metric tonnes per annum (MTPA) for powder paints, such as putties and textures, and 31,200 kilolitres per annum (KLPA) for liquid paints, such as emulsions, primers and enamels.
Hyderabad-based Technopaints and Chemicals provides turnkey paint supply and application services to real estate developers and builders. It also sells products such as putties, textures, primers, emulsions and enamels to business-to-business customers and through franchise partners. As of July 31, 2026, the company had 28 franchisees operating independent retail outlets.
Its order book stood at Rs 994.7 crore as of July 31, 2026.
For the financial year ended March 2026, Technopaints and Chemicals reported revenue from operations of Rs 350.5 crore, up 68.4% from Rs 208.1 crore in the previous financial year. Restated profit rose to Rs 37.8 crore from Rs 16.7 crore during the same period.
Anand Rathi Advisors is the sole merchant banker for the proposed IPO.
