Technopaints Files DRHP for Rs 500 Crore IPO Advised by JSA

Hyderabad-based coatings and painting solutions player Technopaints and Chemicals Limited has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise up to ₹500 crore (approximately $52 million) through an initial public offering.

Leading Indian law firm JSA Advocates and Solicitors (JSA) advised Technopaints on the transaction. The proposed public issue includes a fresh issuance of equity shares aggregating up to ₹325 crore and an Offer for Sale (OFS) of up to ₹175 crore by existing shareholders, including the promoters. The company’s equity shares, with a face value of ₹5 each, are proposed to be listed on both the BSE and the National Stock Exchange of India (NSE).

Legal and Transaction Advisors

The JSA capital markets team handling the mandate was led by partner and co-head of capital markets Arka Mookerjee, alongside partners Pracheta Bhattacharya, Anshu Bansal, and Ananth Balaji. The advisory team also included principal associate Arjun Rastogi, senior associate Arika Gupta, and associates Aditya Shendye, Ishika Jain, and Sharad Panwar.

Speaking to India Business Law Journal, Arka Mookerjee highlighted the complexities of structuring the prospectus around an execution-heavy model:

"Technopaints has been an interesting transaction to work on, given the company's differentiated integrated model spanning paint manufacturing, supply and on-site project execution. A key focus through the process has been presenting that business model clearly, while appropriately capturing the company's project execution capabilities, customer relationships and growth trajectory. One of the principal challenges has been ensuring clear and consistent disclosure around an execution-intensive business, particularly in relation to government-programme projects, the company's order book and working-capital profile."

Use of Proceeds and Expansion Strategy

Technopaints will receive proceeds only from the ₹325 crore fresh issue component, net of issue-related expenses.

Key areas earmarked for fresh proceeds:

• Setting up a new greenfield paints manufacturing and innovation facility
• Meeting incremental working capital requirements
• General corporate purposes

According to the draft papers, the proposed greenfield manufacturing facility will add significant capacity, planned at 2,34,000 metric tonnes per annum (MTPA) for powder paints and 31,200 kilolitres per annum (KLPA) for liquid paints. As of July 31, 2026, the company operated two manufacturing facilities with a combined installed capacity of 126,095 KL/MT per year and offered more than 1,200 SKUs.

Business Profile and Financial Highlights

Founded by Chairman and Managing Director Akuri Srinivas Reddy, Technopaints operates on a "supply and apply" turnkey model, catering to residential, commercial, industrial, and government projects. Its product suite spans architectural decorative paints, industrial coatings, and waterproofing systems.

Key financial and operational milestones:

• Financial Performance: For FY26, the company posted a profit after tax of ₹37.7 crore on revenue from operations of ₹350.5 crore.
• Order Book: As of July 31, 2026, the company held an order book worth ₹994.69 crore.
• Brand Visibility: Technopaints appointed cricket icon Sachin Tendulkar as its national brand ambassador under a three-year agreement to support geographic expansion beyond its core southern and western markets.

The company may also consider a pre-IPO placement of up to ₹65 crore in consultation with its book-running lead managers before filing the final Red Herring Prospectus. Technopaints' proposed market debut comes amid a robust pipeline of mid-market industrial and specialty manufacturing issuers accessing primary equity markets in India.

Tags: Technopaints SEBI JSA IPO Indian Stock Market Specialty Chemicals