Techno Paints IPO: Telangana-Based Paint Company Files Papers To Raise Rs 500 Crore; Check Fresh Issue, OFS

Techno Paints 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), adding the Telangana-based paint and construction solutions company to India's growing IPO pipeline.

Techno Paints IPO: Telangana-Based Paint Company Files Papers To Raise Rs 500 Crore

The proposed issue will provide the company with fresh capital for manufacturing expansion, working capital and other corporate requirements, while also giving existing shareholders an opportunity to sell part of their holdings.

The IPO will comprise a fresh issue of Rs 325 crore and an offer for sale (OFS) of Rs 175 crore by existing shareholders, including promoters. Since proceeds from the OFS will go to the selling shareholders, Technopaints and Chemicals will receive funds raised only through the fresh issue, after deducting applicable issue-related expenses.

Techno Paints IPO Fresh Issue, OFS And Pre-IPO Placement

According to the draft documents, the company may also raise up to Rs 65 crore through a pre-IPO placement before filing its red herring prospectus with the Registrar of Companies. If the pre-IPO placement is completed, the amount raised through it will be adjusted against the fresh issue component.

Techno Paints and Chemicals is promoted by Akuri Srinivasa Reddy and A Sandhya. The company provides paint products as well as application services, with its business primarily focused on real estate developers and builders.

Its operations include turnkey paint supply and application contracts, under which the company provides both the required paint products and execution services. This gives Technopaints exposure to construction and real estate activity, particularly in the markets where it operates.

The company has worked with customers including Prestige, APR Group and Ramky Infrastructure. Alongside project-based contracts, it also sells products such as putties, textures, primers, emulsions and enamels to business-to-business customers and through franchisee partners.

As of July 2026, Techno Paints and Chemicals had 28 franchisees operating independent retail outlets.

Capacity expansion is the biggest identified use of the fresh IPO proceeds. The company plans to allocate Rs 149.1 crore towards setting up a greenfield paints manufacturing and innovation facility. Another Rs 80 crore has been earmarked for incremental working capital requirements, while the remaining funds will be used for general corporate purposes.

Techno Paints currently operates two manufacturing facilities. Their installed capacity stands at 1,03,896 metric tons per annum (MTPA) for powder paints, including putties and textures, and 22,199 kilolitres per annum (KLPA) for liquid paints, including emulsions, primers and enamels.

One of the existing manufacturing facilities operates from leased premises and has limited room for further expansion and advanced product development. The company consequently plans to consolidate its operations at Cheriyal and Pashamylaram in Telangana into the proposed new facility.

Techno Paints Manufacturing Capacity To Expand

The proposed greenfield facility is expected to substantially increase the company's manufacturing capacity if the project is completed as planned. According to the company's draft papers, the facility is proposed to have 2,34,000 MTPA of powder paint capacity and 31,200 KLPA of liquid paint capacity.

The expansion would give Technopaints additional capacity to cater to its project business and broader product requirements. However, investors will need to track the execution of the facility, the timing of commissioning and the extent to which the additional capacity is utilised after it becomes operational.

The proposed plant is also intended to serve as a manufacturing and innovation facility, linking capacity expansion with the development of new products. Technopaints and Chemicals had an order book of Rs 994.7 crore as of July 2026, providing visibility into its pending project work.

Techno Paints Financial Performance: Revenue Rises 68% In FY26

The company's financial performance showed strong growth during the financial year ended March 2026. Profit rose to Rs 37.8 crore in FY26, more than double the Rs 16.65 crore reported in FY25. Revenue from operations increased 68.4% to Rs 350.5 crore in FY26, compared with Rs 208.1 crore in the previous financial year.

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