Specialty Chemicals Company Opens Rs 13.45 Crore SME IPO At Rs 60 Per Share; Check Details

On Thursday, the primary market remained active as VAHH Chemicals opened its Initial Public Offering (IPO) for subscription. The SME issue, which opened on June 4, 2026, will close on June 8, 2026. The company plans to raise Rs 13.45 crore through a fresh issue of equity shares and is proposed to list on the BSE SME platform.

VAHH Chemicals IPO Details

The IPO comprises a fresh issue of 22.42 lakh equity shares with a face value of Rs 10 each. The issue price has been fixed at Rs 60 per share, taking the total issue size to Rs 13.45 crore.

The minimum application lot size has been set at 2,000 equity shares. Retail investors are required to apply for a minimum of 4,000 shares, translating into an investment of Rs 2.40 lakh, while the minimum application size for HNI investors is 6,000 shares, amounting to Rs 3.60 lakh.

The basis of allotment is expected to be finalised on June 9, 2026, while the tentative listing date is June 11, 2026.

VAHH Chemicals Utilisation Of IPO Proceeds

According to the company's offer document, a portion of the net proceeds will be utilised towards funding working capital requirements and expansion initiatives.

VAHH Chemicals plans to allocate approximately Rs 5.84 crore towards incremental working capital requirements, Rs 1.84 crore towards setting up a new manufacturing facility in Surat, Gujarat, and Rs 1.79 crore towards repayment of certain borrowings.

The remaining funds will be utilised for general corporate purposes and issue-related expenses.

VAHH Chemicals Business Overview

VAHH Chemicals operates in the specialty chemicals segment and is engaged in the manufacturing, supply and trading of textile auxiliary chemicals.

The company offers more than 92 stock keeping units (SKUs) catering to textile dyeing, printing and finishing applications across various textile substrates, including cotton, polyester, silk and blended fabrics. Its product portfolio also includes specialty chemicals providing functional properties such as water repellence, flame resistance and UV protection.

The company primarily operates on a B2B business model and provides customised formulations to meet specific customer requirements.

Expanding Nutraceutical Business

Apart from textile chemicals, the company has diversified into the nutraceutical segment through its subsidiary HSHS Nutraceuticals Limited.

Under the Divine Nutrition brand, the company offers health and wellness products through online platforms, supplement stores and gym distributors. The company has also outlined plans to expand its nutraceutical business into international markets, including the United States, Nepal, Dubai and other Gulf countries.

VAHH Chemicals Financial Performance

For FY26, VAHH Chemicals reported revenue of Rs 43.15 crore and profit after Tax (PAT) of Rs 5.09 crore.

The company reported a Return on Equity (ROE) of 34.11 per cent and Return on Capital Employed (ROCE) of 31.76 per cent, reflecting its profitability and capital efficiency during the financial year.

Management Commentary

Hiren Indravadan Desai, Chairman and Managing Director of VAHH Chemicals Limited, said the IPO marks an important milestone in the company's growth journey.

He stated that the proceeds will support expansion plans, strengthen manufacturing capabilities and enhance working capital requirements, while also supporting growth opportunities in the company's nutraceutical business.

About VAHH Chemicals 

Incorporated in 2019, VAHH Chemicals Ltd is an ISO 9001:2015-certified company engaged in the manufacturing, supplying and trading of textile auxiliary chemicals used across pre-treatment, dyeing, printing and finishing applications.

The company has also established a presence in the nutraceutical sector through its subsidiary, offering health and wellness products under the Divine Nutrition brand while continuing to expand its footprint across domestic and international markets.

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Disclaimer: The article is for informational purposes only and not investment advice.