# Telangana Paint Maker Techno Paints Files Draft Papers for Rs 500 Crore IPO

> Telangana-based Techno Paints and Chemicals has submitted draft documents to SEBI to execute an initial public offering worth Rs 500 crore, comprising a fresh issue of Rs 325 crore and an offer for sale of Rs 175 crore.

**Type:** article · **Category:** Market · **Published:** 2026-09-30 · **Source:** TrendKia
**Canonical:** https://trendkia.com/en/market/telangana-ki-techno-paints-laegi-500-karora-rupaye-ka-ipo-sebi-ke-pasa-jama-kie-dastaveja-40522 · **Language:** English
**Tags:** Techno Paints IPO, SEBI, Paint Industry, Telangana, Stock Market, IPO News, Draft Papers

Techno Paints and Chemicals, a Telangana-headquartered manufacturer of paints and construction chemicals, has submitted its draft red herring prospectus to the Securities and Exchange Board of India to raise Rs 500 crore via an initial public offering. The move places the regional coatings firm inside the active Indian capital market queue as it looks to finance industrial scale, support its operational liquidity, and allow early investors to monetize a portion of their holdings.

## Issue Structure: Breakdown of Fresh Capital and OFS
The proposed equity sale consists of a fresh issue aggregating up to Rs 325 crore along with an offer for sale component valued at Rs 175 crore by existing shareholders, which includes members of the promoter group. Because proceeds generated from an offer for sale flow straight to the exiting shareholders, Techno Paints and Chemicals will only retain the capital raised through the fresh issue tranche, net of issue-related merchant banking and regulatory fees.

According to the draft regulatory filings, the company is also considering a pre-IPO placement round to mobilize up to Rs 65 crore prior to filing the definitive red herring prospectus with the Registrar of Companies. Should this private placement be executed successfully, the amount secured will be adjusted downward from the planned fresh issue size, reducing the final public issuance accordingly.

## Business Model, Turnkey Contracts, and Corporate Client Base
Promoted by Akuri Srinivasa Reddy and A Sandhya, Techno Paints operates through a specialized dual model that pairs coating manufacturing with on-site application contracting. The firm directs its commercial focus toward infrastructure developers, institutional contractors, and commercial and residential builders, delivering end-to-end coating execution on large property developments.

This turnkey supply-and-apply framework covers the complete material formulation, supply logistics, and site labour required for projects, exposing the company directly to construction cycles in its key operating territories. The company has executed projects for developers such as Prestige, APR Group, and Ramky Infrastructure. In addition to developer contracts, it distributes products such as wall putties, architectural textures, primers, emulsions, and enamels directly to business-to-business clients and through a dedicated retail network. By July 2026, the firm had established 28 independent franchisee-operated retail outlets serving regional markets.

## Deployment of Funds: Rs 149.1 Crore Greenfield Facility
The primary portion of the net fresh capital will fund industrial capacity additions. Techno Paints has earmarked Rs 149.1 crore to build a greenfield paint manufacturing and product innovation hub. An additional Rs 80 crore has been designated to fund incremental working capital cycles driven by project expansion, with the remaining net capital preserved for general corporate purposes.

Currently, the company manufactures its catalog across two operational sites, maintaining an installed capacity of 1,03,896 metric tons per annum for powder-based lines like putties and textures, alongside 22,199 kilolitres per annum for liquid products, including wall emulsions, primers, and protective enamels.

Because one of its active manufacturing units is located on leased premises with constrained physical space for industrial expansion and technical testing, the management intends to consolidate operations currently situated at Cheriyal and Pashamylaram in Telangana into the upcoming greenfield location. This strategic consolidation aims to streamline operational logistics and production workflows under a single modern campus.

## Capacity Multiplication and Rs 994.7 Crore Order Book
If commissioned according to schedule, the proposed plant will drastically scale up the company's output capabilities. The draft papers show that the greenfield site is designed to hold 2,34,000 metric tons per annum of powder paint capacity and 31,200 kilolitres per annum of liquid paint capacity. This substantial increase will support both ongoing project demands and broader merchant distribution.

Market participants and prospective subscribers will need to monitor how effectively the management executes construction timelines, the exact date of commercial commissioning, and the overall plant capacity utilization achieved after operations commence. The integrated facility is also structured to function as an innovation center, coupling volumetric manufacturing with coating formulation development. By July 2026, the company held an unexecuted order book standing at Rs 994.7 crore, offering revenue visibility for its contracted project pipeline.

## Financial Expansion: Earnings More Than Double in FY26
Techno Paints and Chemicals demonstrated sharp operational acceleration over the financial year ending March 2026. The company posted a net profit of Rs 37.8 crore in FY26, more than double the Rs 16.65 crore recorded during FY25.

Revenue from operations advanced by 68.4 percent, climbing to Rs 350.5 crore in FY26 from Rs 208.1 crore in the preceding financial year. Backed by solid balance-sheet momentum and ongoing demand from builder partnerships, the company is preparing to enter the public markets to finance its next operational phase.

## What this means for you
This public issue will introduce fresh manufacturing capacity into the construction chemicals space and offer investors access to a high-growth turnkey contractor.

- **Across India:** Retail and institutional market participants will gain an investment option in the construction paints supply chain once the issue opens. Investors must monitor regulatory approvals, draft revisions, and price band declarations before placing bids.
- **In Telangana:** Consolidating operations from Cheriyal and Pashamylaram into an integrated greenfield hub will generate local manufacturing employment and bolster regional infrastructure. The Rs 149.1 crore facility will expand the state's industrial footprint in specialized chemical production.
- **For Property Developers:** Scaling powder capacity to 2,34,000 MTPA and liquid to 31,200 KLPA will improve material availability for large-scale real estate projects. Turnkey developers can secure reliable supply chains for ongoing residential and commercial sites.
- **For Retail Consumers:** With 28 retail franchisees already operating, wider plant scale will enhance the regional distribution of primers, enamels, and textures. Homeowners and contractors will see broader retail availability of architectural coating products.

## Why this happened
Techno Paints and Chemicals submitted its draft papers to overcome facility constraints on leased land, fund working capital for a heavy project pipeline, and capitalize on sharp financial growth.

- **Manufacturing Site Constraints:** One of the company's two operational units operates from leased premises with no room for physical expansion or specialized product testing. Consolidating work into a dedicated Rs 149.1 crore greenfield site solves this capacity bottleneck.
- **Backlog Delivery Demands:** An outstanding order book of Rs 994.7 crore as of July 2026 required extensive production throughput and Rs 80 crore in additional working capital. Public capital markets offer an efficient route to finance this expanding scale.
- **Rapid Earnings Acceleration:** Surging FY26 revenues of Rs 350.5 crore and more than doubled profits of Rs 37.8 crore provided the ideal operational backdrop. Management leveraged this balance-sheet momentum to approach public investors.

## Questions & Answers

### 1. What is the total size of the Techno Paints IPO?
The proposed IPO is valued at Rs 500 crore, consisting of a Rs 325 crore fresh issue and a Rs 175 crore offer for sale.

### 2. How will the proceeds from the fresh issue be deployed?
Techno Paints plans to allocate Rs 149.1 crore for a new greenfield facility, Rs 80 crore for working capital requirements, and the rest for general corporate purposes.

### 3. Who are the promoters and major clients of the company?
The firm is promoted by Akuri Srinivasa Reddy and A Sandhya, and its key clients include Prestige, APR Group, and Ramky Infrastructure.

### 4. What were the financial results of Techno Paints in FY26?
In FY26, net profit more than doubled to Rs 37.8 crore, while revenue from operations expanded 68.4 percent to reach Rs 350.5 crore.

### 5. What was the size of the company's order book as of July 2026?
Techno Paints and Chemicals reported an active order book standing at Rs 994.7 crore as of July 2026.

### 6. What will be the capacity of the proposed greenfield manufacturing facility?
The planned greenfield plant is designed to provide 2,34,000 MTPA of powder paint capacity and 31,200 KLPA of liquid paint capacity.

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