Mumbai: Technopaints and Chemicals Ltd has filed a draft red herring prospectus with Sebi for an initial public offering worth up to ₹500 crore. The proposed IPO combines a ₹325 crore fresh issue with a ₹175 crore offer for sale by existing shareholders.
Each equity share has a face value of ₹5. Promoters Akuri Srinivasa Reddy and A. Sandhya plan to sell shares worth up to ₹90 crore and ₹30 crore, respectively. Other promoter group members and individual shareholders will also participate in the offer for sale.
Anand Rathi Advisors is the book-running lead manager, while KFin Technologies is the registrar. The shares are proposed to list on the NSE and BSE.
Where Will the Funds Go?
Technopaints plans to use ₹149 crore from the fresh issue for a new paints manufacturing and innovation facility. Another ₹79.99 crore is earmarked for additional working capital, with the balance intended for general corporate purposes.
The company manufactures and sells paints and undertakes project-based supply and application work for developers and builders. Its projects cover residential, commercial, institutional and industrial properties, including work under government programmes.
For FY26, Technopaints reported revenue of ₹351 crore and net profit of ₹37.78 crore. Its order book stood at ₹995 crore as of July 31, according to the draft filing.
Concentration Risks in Focus
The prospectus highlights the company’s heavy dependence on Telangana, which accounted for 99.59 per cent of its turnkey paints project revenue in FY26. Its two existing manufacturing facilities are also located in the state, as will be the proposed new plant.
The top 10 customers contributed 81.90 per cent of revenue from operations in FY26. Technopaints said it has no long-term customer agreements guaranteeing future projects.
It also flagged exposure to raw material price increases and cost overruns on fixed-price contracts. These factors, alongside its working capital needs, are among the risks investors will need to assess when the issue opens for subscription.
