Vahh Chemicals Ltd IPO

Chemicals

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Price Band

₹60 – ₹60

Lot Size

2000

Minimum Bid Quantity

4000

Minimum Investment

₹240000

Issue Size

₹13.45Cr

Opens

2026-06-04

Closes

2026-06-08

Listing

11-06-2026

IPO Details

Issue Type

EQUITY

Face Value

₹10

Tick Size

1

ISIN

INE0H3U01013

Pre-Apply Available

No

Daily Bidding Time

10:00:00 - 17:00:00

About the Company

Vahh Chemicals Limited is an ISO 9001:2015 certified company engaged in the business of manufacturing, trading, supplying, and blending textile auxiliary chemicals primarily used in the textile processing industry. The company primarily serves dyeing and printing houses by offering chemical solutions for various stages of textile processing, such as pre-treatment, dyeing, printing, and finishing. As of September 30, 2025, the company had a portfolio of 92 SKUs in its chemical division, catering to textile substrates including cotton, polyester, silk, and synthetic blends. The company also develops customised formulations that provide functional properties such as water repellence, flame resistance, anti-microbial finishes, UV absorbers, and wrinkle-free resins. Its operations are primarily conducted on a business-to-business (B2B) basis through its manufacturing facility located in Surat, Gujarat. The company operates through three business segments: trading in textile chemicals; blending of customised chemical formulations; and nutraceutical products through its subsidiary, HSHS Nutraceuticals Limited, under the “Divine Nutrition” brand. The company transitioned into a corporate structure in 2019 and expanded its operations through the acquisition of proprietary businesses in 2024. Use of proceeds: This is a fresh issue of shares. Therefore, the net proceeds from the fresh issue will go to the company. They will be utilised for the following purposes: Funding incremental working capital requirements of the company — Rs 5.84 crore Setting up a new manufacturing facility at Surat, Gujarat — Rs 1.84 crore Repayment of loan availed by the company — Rs 1.79 crore General corporate purposes

Pros

  • • The company claims to have served over 65 regional and local customers as of September 30, 2025. It states that its largest customer contributed 17.27%, 16.59%, 23.80%, and 21.27% of revenue in the period ended September 30, 2025, FY25, FY24, and FY23, respectively. The company further declares that 8 out of its top 20 customers have been associated with it for more than three years, contributing 13.23%, 33.57%, 53.83%, and 67.56% of revenue during the respective periods, reflecting customer retention and repeat business.
  • • The company states that its business model focuses on manufacturing, sourcing, and blending customized textile auxiliary chemicals for dyeing and printing houses. It claims to offer a portfolio of 92 SKUs as of September 30, 2025, catering to textile substrates such as cotton, polyester, silk, and synthetic blends. The company declares that its customised blending capabilities help textile manufacturers improve fabric quality, colour vibrancy, and durability across pre-treatment, dyeing, printing, and finishing applications.
  • • The company claims that its promoters collectively possess over a decade of experience in the textile chemicals industry. The company further declares that its board and senior management team bring experience across customer relations, quality management, sales, marketing, and finance, supporting operational growth and strategic decision-making.

Cons

  • • The company’s operations are entirely concentrated in Gujarat, particularly Surat, exposing it to regional economic, regulatory and competitive risks. Any adverse developments, such as changes in local business conditions, industry demand, regulatory policies, or increased competition in Gujarat, may adversely impact revenue and operations. The company may also face challenges while expanding into new geographies where local competitors may have stronger market presence, supplier relationships, and operational advantages.
  • • The company derives a substantial portion of its revenue from a limited customer base. Revenue from the top 10 customers contributed Rs 7.39 crore (44.73%) in the period ended September 30, 2025, Rs 14.25 crore (60.01%) in FY25, Rs 8.57 crore (84.43%) in FY24, and Rs 6.63 crore (88.92%) in FY23. Revenue from the single largest customer stood at Rs 2.85 crore (17.27%), Rs 3.94 crore (16.59%), Rs 2.42 crore (23.80%), and Rs 1.59 crore (21.27%) during the respective periods. Any reduction in orders or loss of one or more key customers may adversely affect revenue visibility, profitability, and business stability.
  • • The company is dependent on a limited number of suppliers for the procurement of raw materials and does not have formal long-term supply agreements with most of them. Top 10 suppliers contributed 70.82%, 63.57%, 99.84%, and 92.40% of total purchases during the period ended September 30, 2025, FY25, FY24, and FY23, respectively. Any disruption in supplier relationships, unfavourable credit terms, or inability to source raw materials at competitive prices may adversely impact production, margins, and operational continuity.

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