The IPO of Vahh Chemicals will open for subscription on Thursday, with grey market signals pointing to healthy investor interest ahead of the SME issue. According to market trackers, the IPO is commanding a grey market premium (GMP) of about 23%, indicating a potential listing price of around Rs 74 against the issue price of Rs 60 per share.
The BSE SME issue will open on June 4 and close on June 8. The allotment is expected to be finalized on June 9, while the shares are scheduled to list on June 11.
The IPO is a fixed-price issue aggregating Rs 13.45 crore and consists entirely of a fresh issue of 22.42 lakh shares. The company has fixed the issue price at Rs 60 per share. Investors can apply for a minimum of 4,000 shares, requiring an investment of Rs 2.4 lakh. High-net-worth investors must bid for at least 6,000 shares worth Rs 3.6 lakh.
Incorporated in 2019, Vahh Chemicals manufactures, supplies and trades textile auxiliary chemicals used across textile processing applications such as pre-treatment, dyeing, printing and finishing.
The company offers 92 stock-keeping units catering to textile substrates including cotton, polyester, silk and synthetic blends. Its product portfolio also includes specialty chemicals used for water repellence, flame resistance, antimicrobial treatment, UV protection and wrinkle-free finishes.
Apart from its core textile chemicals business, the company has a presence in the nutraceutical segment through its subsidiary HSHS Nutraceuticals, which markets products under the "Divine Nutrition" brand.
The company primarily operates on a business-to-business model and serves customers through a distribution network centered in Surat, one of India's largest textile manufacturing hubs.
Financially, Vahh Chemicals reported strong growth in FY26. Revenue rose 82% year-on-year to Rs 43.19 crore, while profit after tax increased 97% to Rs 5.09 crore.
The company said the IPO proceeds will be used for working capital requirements and general corporate purposes.
The 23% GMP suggests investors are betting on a positive listing, although grey market premiums are unofficial indicators and do not guarantee actual listing gains or subscription demand.
Marwadi Chandarana Intermediaries Brokers is the book-running lead manager to the issue, while Kfin Technologies is the registrar. Mansi Share & Stock Broking is the market maker.
