Vahh Chemicals IPO is a fixed-price SME public issue worth ₹13.45 crore. The IPO consists entirely of a fresh issue of 22.42 lakh equity shares, with no offer-for-sale component.
The public issue will open for subscription on June 4, 2026, and close on June 8, 2026. The basis of allotment is expected to be finalized on June 9, 2026, while the company's shares are scheduled to make their debut on the BSE SME platform on June 11, 2026.
The company has fixed the IPO price at ₹60 per share. Investors can apply in lots of 2,000 shares. Retail investors are required to apply for a minimum of two lots (4,000 shares), translating into an investment of ₹2.40 lakh. For HNI investors, the minimum application size is three lots (6,000 shares), amounting to ₹3.60 lakh.
The issue is being managed by Marwadi Chandarana Intermediaries Brokers Pvt. Ltd., which is acting as the book-running lead manager. Kfin Technologies Limited has been appointed as the registrar to the issue, while Mansi Share & Stock Broking Pvt. Ltd. will serve as the market maker.
Vahh Chemicals IPO Objectives
Vahh Chemicals plans to utilize the net proceeds from the IPO for the following purposes:
- ₹5.84 crore will be allocated towards meeting the company's incremental working capital requirements.
- ₹1.93 crore will be used to establish a new manufacturing facility in Surat, Gujarat.
- ₹1.84 crore is earmarked for the repayment or prepayment of certain outstanding borrowings.
- ₹2.02 crore will be utilized for general corporate purposes and other business requirements.
- The total estimated utilisation of the IPO proceeds amounts to ₹11.63 crore.
About Vahh Chemicals Limited
Founded in 2019, Vahh Chemicals Limited is an ISO 9001:2015-certified company engaged in the manufacturing, trading, and supply of textile auxiliary chemicals. The company provides a broad range of chemical solutions used across various stages of textile processing, including pre-treatment, dyeing, printing, and finishing. It primarily caters to dyeing and printing units and also develops customised formulations tailored to specific customer requirements.
As of September 30, 2025, Vahh Chemicals offered a portfolio of 92 products serving different textile substrates such as cotton, polyester, silk, and blended fabrics. Its specialty chemical range is designed to enhance fabric performance by imparting properties such as water repellency, flame resistance, antimicrobial protection, UV resistance, and wrinkle-free finishing.
The company operates largely through a B2B business model and maintains a manufacturing facility spread across approximately 301.25 square metres. Supported by a well-established distribution network in Surat, Gujarat, the company conducts its operations through three key segments: trading of textile processing chemicals, customised chemical blending solutions, and nutraceutical products through its subsidiary, HSHS Nutraceuticals Limited, which markets products under the “Divine Nutrition” brand across India.
Vahh Chemicals' key strengths include its long-standing relationships with a diversified customer base, customer-centric approach focused on customised solutions, and the experience of its promoters and management team, which supports its growth and operational capabilities.
Industry Outlook
- The specialty chemicals industry has been witnessing strong double-digit growth, supported by rising demand from both export markets and the domestic textile sector.
- Vahh Chemicals offers a diversified portfolio of more than 110 products catering to a wide range of textile applications across cotton, silk, polyester, and blended fabrics.
- As part of its expansion strategy, the company plans to establish a new manufacturing facility in Surat, Gujarat, using a portion of the IPO proceeds. This move is expected to enhance backward integration, improve quality control, strengthen supply-chain efficiency, and provide better control over pricing.
- The company's business operations are largely concentrated in Gujarat, making it vulnerable to regional economic fluctuations, industry slowdowns, and local competitive pressures.
- Revenue generation is dependent on a relatively limited number of key customers and suppliers. Additionally, raw material expenses account for a significant share of operating costs, which could impact profitability during periods of input-price volatility.
- Vahh Chemicals is launching a ₹13.45 crore SME IPO, comprising a 100% fresh issue of equity shares.
- The funds raised will primarily be used to meet working capital requirements, finance the proposed manufacturing facility in Surat, and reduce existing debt obligations.
- The company has reported improving financial performance in recent years, with growth in revenue and profitability. It also maintains healthy operational efficiency, reflected in a Return on Capital Employed (ROCE) of over 31%.
How To Apply for the Vahh Chemicals IPO Online?
- Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
- Locate the IPO Section: Navigate to the 'IPO' section on the platform.
- Select IPO: Find and select the Vahh Chemicals IPO from the list of open IPOs.
- Enter the Lot Size: Specify the number of lots you want to bid for.
- Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
- Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
How To Check the Allotment Status of Vahh Chemicals IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app.
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
Contact Details of Vahh Chemicals Limited
Registered office: Vahh Chemicals Ltd. Address- Plot 2/5198 ETC, 5th Floor,5003, World Trade Centre, Near Udhna Darawaja, Ring Road, Surat, Gujarat, 395002
Phone:+91 26 1234 4045
E-mail:accounts@divinenutrition.in
Vahh Chemicals IPO Reservation
| Investor Category | Shares Offered | % of Net Issue | % of Total Issue |
| NII (HNI) Investors | 10,64,000 | 50.00% | 47.46% |
| Retail Investors (RII) | 10,64,000 | 50.00% | 47.46% |
| Market Maker Reservation | 1,14,000 | — | 5.08% |
| Total | 22,42,000 | 100.00% | 100.00% |
Vahh Chemicals IPO Lot Size Details
| Application Category | Lots | Shares | Investment Amount |
| Retail Investor (Minimum) | 2 | 4,000 | ₹2,40,000 |
| Retail Investor (Maximum) | 2 | 4,000 | ₹2,40,000 |
| HNI Investor (Minimum) | 3 | 6,000 | ₹3,60,000 |
Vahh Chemicals IPO Promoter Holding
The promoters of the company include Hiren Indravadan Desai, Hetal Hirenbhai Desai, and Aayush Hiren Desai .
| Share Holding Pre-Issue | 88.52% |
| Share Holding Post Issue | 64.63% |
Note: Equity dilution will be determined by subtracting the Shareholding Post Issue from the Shareholding Pre Issue.
Key Performance Indicators for Vahh Chemicals IPO
| KPI | FY26 (Mar 31, 2026) | FY25 (Mar 31, 2025) |
| ROE (%) | 34.11% | 65.40% |
| ROCE (%) | 31.76% | 25.72% |
| Debt/Equity (x) | 0.76 | 1.64 |
| RoNW (%) | 32.21% | 38.52% |
| PAT Margin (%) | 11.79% | 10.87% |
| EBITDA Margin (%) | 19.06% | 19.69% |
| Price to Book Value (x) | 2.44 | 4.69 |
Vahh Chemicals IPO Registrar and Lead Managers
Vahh Chemicals IPO Lead Managers
- Marwadi Chandarana Intermediaries Brokers Pvt.Ltd
Registrar for Vahh Chemicals IPO
Kfin Technologies Ltd.
- Contact Number: 04067162222, 04079611000
- Email Address: vcl.ipo@kfintech.com
Financial Performance of Vahh Chemicals Limited
| Particulars | FY26 (Mar 31, 2026) | FY25 (Mar 31, 2025) |
| Total Assets (₹ Crore) | 43.87 | 39.28 |
| Total Income (₹ Crore) | 43.19 | 23.75 |
| Profit After Tax (PAT) (₹ Crore) | 5.09 | 2.58 |
| EBITDA (₹ Crore) | 8.23 | 4.68 |
| Net Worth (₹ Crore) | 14.92 | 6.87 |
| Reserves & Surplus (₹ Crore) | 8.85 | 1.50 |
| Total Borrowings (₹ Crore) | 11.31 | 11.25 |
Vahh Chemicals Limited Peer Comparison
| Company Name | EPS (Basic) | EPS (Diluted) | NAV (₹/Share) | P/E (x) | RoNW (%) | P/BV Ratio |
| Vahh Chemicals Ltd. | 8.00 | 8.00 | 24.60 | 7.50 | 32.21 | 2.50 |
| Bhatia Colour Chem Ltd. | 2.95 | 2.95 | 73.80 | 18.07 | 4.00 | 0.73 |
Strengths and Opportunities of Vahh Chemicals Limited
- Vahh Chemicals operates from Surat, one of India's largest textile processing hubs, enabling efficient distribution, close customer engagement, and faster response times to client requirements.
- The company follows a customer-focused B2B business model, offering a wide portfolio of textile chemicals, customized formulations, and technical support services to enhance fabric quality and performance.
- The IPO consists entirely of a fresh issue of equity shares, ensuring that the proceeds are directed toward business expansion initiatives, including the establishment of a new manufacturing facility and meeting working capital requirements, with no offer-for-sale component.
- The company has demonstrated strong financial growth in recent years, supported by rising revenues, improving profitability, and healthy operational performance.
- The proposed manufacturing facility in Surat is expected to expand production capacity, reduce dependence on outsourced supplies, and support future business growth.
- Through its subsidiary, HSHS Nutraceuticals Limited, which markets products under the Divine Nutrition brand, the company has an opportunity to diversify its revenue streams beyond the textile chemicals segment.
- Increasing demand for sustainable and environmentally friendly textile processing solutions presents a significant opportunity for the company to expand its specialty chemical offerings.
Risks and Threats of Vahh Chemicals Limited
- Vahh Chemicals derives a significant portion of its revenue from a limited number of customers. Historically, its top 10 customers have contributed a substantial share of total sales, making the business vulnerable to the loss of any major client.
- The company also depends on a concentrated supplier base for raw materials, which could expose operations to supply-chain disruptions, procurement challenges, and reduced bargaining power.
- Most of the company's manufacturing operations and business activities are concentrated in Gujarat. Any adverse regional developments, including regulatory changes, environmental issues, or economic disruptions, could negatively affect operations.
- The company operates within the textile auxiliary chemicals segment, making its performance closely linked to the textile industry's growth cycle. Changes in export demand, industry slowdown, or stricter environmental norms may impact business prospects.
- Raw material expenses account for a major portion of the company's operating costs. Any sharp increase in input prices could put pressure on margins and profitability.
- The company has relied on unsecured borrowings for funding. Since such loans may be recalled by lenders, they could create liquidity and working capital challenges.
- As the shares will be listed on the BSE SME platform, investors may face lower trading liquidity compared to mainboard-listed stocks, potentially affecting ease of entry and exit.
- The absence of participation from Qualified Institutional Buyers (QIBs) could result in higher price volatility after listing.
