Technopaints And Chemicals Submits DRHP For Proposed IPO, Plans To Raise As Much As ₹500 Crore

Mumbai: Technopaints and Chemicals Ltd has submitted a draft red herring prospectus to Sebi for an initial public offering, with the potential to raise up to ₹500 crore. The IPO comprises a ₹325 crore fresh issue and a ₹175 crore offer for sale by existing shareholders, with each equity share valued at ₹5. The promoters, Akuri Srinivasa Reddy and A. Sandhya, plan to sell shares worth up to ₹90 crore and ₹30 crore, respectively.

The remaining shares will be part of the offer for sale by other promoter group members and individual shareholders. Anand Rathi Advisors serves as the book-running lead manager, while KFin Technologies acts as the registrar. The shares are set to be listed on both the NSE and BSE. The company intends to allocate ₹149 crore from the fresh issue towards constructing a new paints manufacturing and innovation facility, while another ₹79.99 crore will be used to bolster working capital, with the remaining funds for general corporate purposes.

Technopaints specializes in manufacturing and selling paints, as well as undertaking project-based supply and application work for developers and builders, catering to residential, commercial, institutional, and industrial properties. The company's FY26 revenue amounted to ₹351 crore and net profit to ₹37.78 crore, with an order book valued at ₹995 crore as of July 31.

However, the prospectus emphasizes the company's significant reliance on Telangana, which accounted for 99.59% of its turnkey paints project revenue in FY26, and its two manufacturing facilities, both located in the state. The top 10 customers accounted for 81.90% of revenue from operations in FY26. Technopaints noted the absence of long-term customer agreements guaranteeing future projects and highlighted exposure to raw material price increases and cost overruns on fixed-price contracts, which are among the risks investors must consider when the issue opens for subscription.