Vahh Chemicals shares made a strong market debut on BSE SME today, listing at ₹70 per share against the IPO price of ₹60, delivering a solid 16.67% premium. The stock rose marginally to its day's high of ₹71 but then witnessed selling pressure and hit the 5% lower price band at ₹66.50 per share. The listing performance exceeded expectations as signalled by the grey market premium of ₹5.25, which had suggested a listing pop of 8.75%. The ₹13.45 crore IPO, entirely a fresh issue of 22.42 lakh shares at ₹60 per share, was subscribed 82.78 times overall with robust participation from retail investors. As per Business Standard, the stock traded at ₹68 on the BSE, a 13.33% premium to the issue price, with about 17.36 lakh shares changing hands at the counter.
The IPO received stellar investor response across all categories, with the non-institutional investor (NII) portion booked 74.20 times and the retail segment subscribed 99.11 times. The ₹13.45 crore SME IPO was open for bidding from June 4 to June 8, with the allotment finalised on June 9. The fixed price issue of ₹60 per share was entirely a fresh share sale, meaning that the company will receive all proceeds from the IPO. The promoter and promoter shareholding diluted to 64.63% from 85.52% pre-IPO, reflecting the significant institutional interest in the company.
Vahh Chemicals has demonstrated exceptional financial growth over the past year, with revenue rising 82% to ₹43.19 crore in FY26 from ₹23.75 crore in FY25. Profit after tax increased 97% to ₹5.09 crore from ₹2.58 crore year-on-year, while EBITDA grew to ₹8.23 crore from ₹4.68 crore. The company recorded revenue from operations of ₹43.15 crore and net profit of ₹5.08 crore for the period ended 31 March 2026. The company offers 92 stock keeping units (SKUs) catering to various textile substrates including cotton, polyester, silk and synthetic blends, along with specialty chemicals providing properties such as water repellence, flame resistance, anti-microbial protection, UV resistance and wrinkle-free finishing.
Proceeds from the fresh issue will be utilized for working capital requirements, setting up a new manufacturing facility in Surat, repayment of borrowings and general corporate purposes. 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. With strong earnings growth, improving profitability and 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.
