Vahh Chemicals Lists at ₹70, Up 10.92%

Vahh Chemicals Ltd, incorporated in 2019 as an ISO 9001:2015 certified manufacturer, supplier, and trader of textile auxiliary chemicals sourcing and blending wide range of chemicals used in textile processing including pre-treatment, dyeing, printing, and finishing offering 92 SKUs covering cotton, polyester, silk, and synthetic blends along with specialty chemicals adding functional properties like water repellence, flame resistance, anti-microbial effects, UV protection, and wrinkle-free finishes serving dyeing and printing houses under B2B model with facility covering 301.25 sq. meters in Surat, Gujarat along with nutraceuticals subsidiary HSHS Nutraceuticals marketing "Divine Nutrition" brand having 29 employees, made a moderate debut on BSE SME on Thursday, June 11, 2026. The Vahh Chemicals share price opened at ₹70.00 representing premium of 16.67% from issue price of ₹60.00, dipped to ₹66.55 (up 10.92%).

Vahh Chemicals Listing Details

Vahh Chemicals launched its fixed price fresh issue IPO at ₹60 per share with minimum investment of 4,000 shares costing ₹2,40,000 raising ₹13.45 crore. The IPO received strong response with subscription of 87.17 times - retail investors at 100.18 times, NII at 74.08 times, total applications of 36,344 indicating strong investor enthusiasm for textile auxiliary chemicals company despite small issue size.

First-Day Trading Performance

Listing Price: Vahh Chemicals stock price opened at ₹70.00 representing premium of 16.67% from issue price, touched high of ₹71.00 (up 18.33%), dipped to lower circuit at ₹66.50, with VWAP at ₹69.59. The moderate listing delivered gains for IPO investors with turnover of ₹11.02 crore, traded volume of 15.84 lakh shares, delivery of 100%, and market capitalisation of ₹55.28 crore against pre-IPO market cap of ₹49.84 crore.

Growth Drivers and Challenges

Growth Drivers:

Strong FY26 Growth: Revenue surging 82% YoY from ₹23.75 crore to ₹43.19 crore, PAT growing 97% YoY from ₹2.58 crore to ₹5.09 crore demonstrating rapid business expansion in textile chemicals segment.

Diversified Business Model: Three segments spanning trading (textile chemicals distribution), blending (customized chemical solutions), and nutrition (nutraceuticals through Divine Nutrition brand) providing revenue diversification.

Challenges:

Non-Convincing Bottom Line Surge: Analyst warns surge in bottom lines from FY25 onwards is non-convincing given highly competitive and fragmented textile chemicals segment.

Aggressively Priced: Issue appears aggressively priced with small equity capital base post-IPO indicating longer gestation period for mainboard migration.

Utilisation of IPO Proceeds

Working Capital: ₹5.84 crore for funding incremental working capital requirements of textile chemicals business.

General Corporate Purposes: ₹2.02 crore.

New Manufacturing Facility: ₹1.93 crore for setting up new manufacturing facility at Surat, Gujarat.

Debt Repayment: ₹1.84 crore for repayment of loan availed by company.

Financial Performance

Revenue: ₹43.19 crore for FY26, growth of 82% from ₹23.75 crore in FY25.

Net Profit: ₹5.09 crore in FY26 (up 97% YoY), growth from ₹2.58 crore in FY25, with post-IPO EPS of ₹6.13 and P/E of 9.79x. Investors tracking Vahh Chemicals share price should note ROE of 34.11%, ROCE of 31.76%, PAT margin of 11.79%, and EBITDA margin of 19.06% with strong 87x subscription.