Vahh Chemicals Limited IPO

Vahh Chemicals Limited was incorporated in 2019 and operates in the chemicals sector with a focus on textile auxiliary chemicals for pre-treatment, dyeing, printing and finishing applications.

The company offers 92 SKUs catering to cotton, polyester, silk and synthetic blends along with specialty chemicals providing water repellence, flame resistance, anti-microbial effects and UV protection. The company mainly operates on a B2B model and has a strong customer network in Surat.

The promoters have industry experience in textile chemicals and the company also operates in nutraceutical products through its subsidiary “HSHS Nutraceuticals Limited” under the brand “Divine Nutrition”.

The issue comprises a fresh issue of Rs 13.45 Cr at a fixed price of Rs 60 per share, implying a post-issue market cap of around Rs 49.84 Cr.

The IPO proceeds will be utilised towards working capital requirements, setting up a new manufacturing facility in Surat and repayment of borrowings. At the issue price, the IPO is valued at a post-issue P/E of around 11.99x FY25 earnings. Key strengths include diversified product portfolio, customized chemical solutions and strong customer relationships, while key risks include small scale operations and dependence on the textile industry cycle.