Key facts
- Vahh Chemicals IPO, valued at ₹13.45 crore, is set to list on the BSE SME platform on June 11.
- The IPO was fully a fresh issue of 22.42 lakh shares at a fixed price of Rs 60 per share.
- The public offer was subscribed 11.08 times, driven by retail investors.
- Grey market signals suggest a potential listing gain of approximately 5%, with shares expected to debut around Rs 63.
- Vahh Chemicals manufactures and supplies textile auxiliary chemicals and also has exposure to the nutraceutical segment.
Vahh Chemicals is set to make its stock market debut on the BSE SME platform today, June 11. The company's Initial Public Offering (IPO), which raised ₹13.45 crore, was fully a fresh issue of 22.42 lakh shares offered at a fixed price of Rs 60 per share. The issue garnered significant investor interest, being subscribed 11.08 times overall, with a strong showing from retail investors and active participation from non-institutional investors.
Ahead of its listing, Vahh Chemicals shares were trading at a grey market premium (GMP) of approximately 5%. This unofficial indicator suggests that the stock is expected to list around Rs 63 per share, reflecting a potential gain of about Rs 3 per share over the issue price. However, the actual listing performance may differ from GMP indications.
Vahh Chemicals, established in 2019, specializes in the manufacturing, supply, and trading of textile auxiliary chemicals used in pre-treatment, dyeing, printing, and finishing processes. The company offers a diverse range of 92 stock-keeping units (SKUs) for various textile substrates and also provides specialty chemicals. Additionally, it has a presence in the nutraceutical sector through its subsidiary, HSHS Nutraceuticals, marketing products under the 'Divine Nutrition' brand.
The company primarily operates on a business-to-business (B2B) model, serving dyeing and printing houses via a distribution network concentrated in Surat, a major textile hub in India. Vahh Chemicals has demonstrated strong financial performance, with revenue increasing by 82% to Rs 43.19 crore and profit after tax rising by 97% to Rs 5.09 crore in FY26 compared to FY25. EBITDA also saw substantial growth.
Proceeds from the IPO are earmarked for working capital needs, establishing a new manufacturing facility in Surat, repaying borrowings, and general corporate purposes. Investors will be closely watching the company's debut performance on the BSE SME platform, anticipating whether it can meet the modest expectations set by the grey market.