Upcoming Techno Paints IPO Details: Rs 500 Cr Issue Size, DRHP File Coming Soon

The Hyderabad-based company Techno Paints and Chemicals Limited plans to raise Rs 500 crore through a public issue in FY27, which provides an attractive upcoming opportunity in India’s burgeoning paints sector. In keeping with its ambitious expansion plans, which have the support of celebrity endorser Sachin Tendulkar, the company has declared its desire to submit its Draft Red Herring Prospectus (DRHP) to SEBI in the years 2026–27.

IPO Timeline

The procedure is still in its early planning phases for FY27 (April 2026 to March 2027), hence Techno Paints has not yet announced its IPO dates. Within this time frame, we want to file the DRHP, then open the issue, allocate shares, and list on BSE and NSE, all depending on market circumstances and approvals from regulators. Following submission of the DRHP, investors should check SEBI updates for more accurate timelines.

Issue Details

In order to fund national expansion, new manufacturing facilities, and overseas ventures like those in the Middle East, Techno Paints is attempting to raise Rs 500 crore wholly through an initial public offering (IPO). After DRHP, specifics like lot sizes, price ranges, and retail, QIB, and NII allocations will become clear. However, in the retail sector, the normal minimum application is somewhere between 1,000 and 2,000 shares, according to industry standards. At the moment, there is no grey market premium (GMP) in place. Once the issue is launched, allotment status will be accessible on the registrar’s platform.

Company Financials

Techno Paints reported revenue of Rs 210 crore in FY25 (2024-25), marking robust growth from prior years where operating revenue ranged Rs 100-500 crore in FY24. The company projects Rs 450 crore for FY26 and ambitious Rs 2,000 crore by FY30, driven by a product mix of decorative, industrial, and specialty paints offering over 3,000 shades. EBITDA surged 152% in recent filings, with networth up 82%, signaling strong fundamentals ahead of the IPO.

Promoters and Operations:

Akuri Srinivas Reddy (Chairman-MD) and Akuri Sandhya are the main promoters. Reddy is tied to 60% of the company’s older designs, along with family businesses like Fortune Paints. The company is based in Hyderabad and has a research and development center and a plant in Pashamylaram. It serves eight states: Telangana, Andhra Pradesh, Karnataka, Maharashtra, Gujarat, Delhi, Odisha, and Chandigarh. By the end of 2026, expansion will reach five more states (Himachal Pradesh, Tamil Nadu, Rajasthan, West Bengal, and Uttar Pradesh) and the Middle East.

Peer Comparison

Techno Paints enters a competitive paints market dominated by giants like Asian Paints and Berger Paints, where per capita consumption lags global averages at 4.5 liters versus 15 liters. While unlisted, its Rs 210 crore FY25 revenue pales against peers’ thousands of crores, but high growth potential positions it as an aggressive mid-tier player. Valuation details, including P/E multiples, will clarify post-DRHP against peers trading at 50-60x earnings.

The Techno Paints IPO wants to raise Rs 500 crore in new capital to help the company grow across the country, build new factories, and enter new markets including the Middle East. After the DRHP, there will be more information about lot sizes, price bands, and category allocations (retail, QIB, NII). However, for retail, the regular minimum applications will be about 1,000 to 2,000 shares, which is what is typical in the industry. There is currently no grey market premium (GMP), but the registrar’s portal will show allotment status when the issue is live.

IPO Review

No anchor investors or merchant bankers are appointed yet, with details forthcoming in the DRHP. The IPO garners positive buzz from Sachin Tendulkar’s three-year ambassadorship and the industry’s 5-9% annual growth, making Techno Paints a watchlist candidate for growth investors. Subscribe status and review will depend on final pricing and expansion execution.

Nadim

Mr. Nadim Abbas M G is an Intermediate Chartered Accountant with a strong background in Information Technology. He combines his expertise in IT with a deep understanding of the stock market, making him a valuable resource for both financial and technical insights. With hands-on experience in accounting, IT systems, and stock market analysis, Nadim excels in bridging the gap between finance and technology, offering strategic advice and expert guidance in both domains.