Shares of Vahh Chemicals are scheduled to make their stock market debut on the BSE SME platform on Thursday, June 11, with grey market signals indicating a modest listing gain for investors. The company's shares were commanding a grey market premium (GMP) of around 5% ahead of listing. Based on the issue price of Rs 60 per share, the stock is expected to list around Rs 63, implying a gain of about Rs 3 per share. However, GMP is an unofficial market indicator and actual listing performance may vary.
The Rs 13.45 crore IPO was entirely a fresh issue of 22.42 lakh shares and was offered at a fixed price of Rs 60 per share.
The issue received a healthy response from investors, with the public offer subscribed 11.08 times overall. Demand was driven largely by retail investors, while non-institutional investors also participated actively in the issue.
Incorporated in 2019, Vahh Chemicals is engaged in the manufacturing, supplying and trading of textile auxiliary chemicals used across pre-treatment, dyeing, printing and finishing processes in the textile industry.
The company offers 92 stock keeping units (SKUs) catering to various textile substrates, including cotton, polyester, silk and synthetic blends. It also supplies specialty chemicals that provide properties such as water repellence, flame resistance, anti-microbial protection, UV resistance and wrinkle-free finishing.
Apart from textile chemicals, the company has exposure to the nutraceutical segment through its subsidiary, HSHS Nutraceuticals, which markets products under the "Divine Nutrition" brand.
The company primarily operates on a B2B model and serves dyeing and printing houses through its distribution network concentrated in Surat, one of India's largest textile hubs.
Financial performance has improved sharply over the last year. For FY26, revenue rose 82% to Rs 43.19 crore from Rs 23.75 crore in FY25. Profit after tax increased 97% to Rs 5.09 crore from Rs 2.58 crore, while EBITDA grew to Rs 8.23 crore from Rs 4.68 crore.
Proceeds from the fresh issue will be used for working capital requirements, setting up a new manufacturing facility in Surat, repayment of borrowings and general corporate purposes.
With strong earnings growth, improving profitability and a reasonable valuation, investors will be watching whether Vahh Chemicals can deliver on the modest expectations reflected in the grey market when trading begins on the BSE SME platform.
