- Technopaints files DRHP for Rs 500 crore IPO with SEBI.
- Proceeds to fund a new paint manufacturing plant in Telangana.
- Company also considering a pre-IPO placement of Rs 65 crore.
Technopaints and Chemicals has filed draft papers with the Securities and Exchange Board of India (SEBI) to raise Rs 500 crore through an initial public offering (IPO). Meanwhile, the Hyderabad-based company may consider a pre-IPO placement to raise nearly Rs 65 crore.
The company, i n its draft red herring prospectus (DRHP), informed that the proposed share sale comprises a fresh issue of shares worth up to Rs 325 crore and an offer for sale (OFS) of up to Rs 175 crore. Existing shareholders and promoters will offload stake under OFS.
Before the final IPO submission, the company may also consider a pre-IPO placement of up to Rs 65 crore, and if the pre-IPO placement is completed, the amount will be deducted from the fresh issue subsequently. As per the information, Anand Rathi Advisors is the sole investment bank for the proposed IPO.
Where do proceeds go?
- The company plans to use the approximately Rs 149.1 crore raised through the IPO to set up a paint manufacturing and innovation plant in Ibrahimpatnam, Telangana.
- Another Rs 80 crore will be used to fund additional working capital requirements, while the remaining amount will be used for general corporate purposes.
- The proposed plant is expected to have an installed capacity of 2,34,000 metric tonnes per annum (MT/Y) for powder coatings such as fillers and textures and 31,200 kilolitres per annum (KL/Y) for liquid coatings such as emulsions, primers, and enamels.
Financial Report
According to shared information, the company’s order book stood at Rs 994.7 crore as of July 31, 2026.
Financial Metric | FY 2025 | FY 2026 |
|---|---|---|
Revenue from Operations | Rs 208.1 crore | Rs 350.5 crore |
Restated Profit | Rs 16.7 crore | Rs 37.8 crore |
What does Technopaint and Chemicals do?
Technopaints and Chemicals is a Hyderabad-based company which deal in turnkey paint supply and application services to real estate developers and builders. Additionally, it also does business in paints, textures, primers, emulsions and enamels for business-to-business customers. The company also works with franchise partners as well. As of July 31, 2026, the company had 28 franchisees operating independent retail outlets.
Conclusion
Technopaints and Chemicals is planning to launch its initial share sale at a time when India’s primary market has a lot of Buzz. Every week, at least 3-4 IPOs are either opening for subscription or getting listed on exchanges. The first half of the year 2026 was muted due to geopolitical concerns and US President Donald Trump tariff war. However, India’s IPO market picked up momentum in the second half of 2026, despite persistent volatility in the domestic stock market.