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Vahh Chemicals Ltd IPO
Status: Closed
Overview
IPO date
04 Jun 2026 to 08 Jun 2026
Face value
₹ 10 per share
Price
₹ 60 to ₹60 per share
Issue Size
2,242,000 shares
(aggregating up to ₹ 13.45 Cr)
(aggregating up to ₹ 13.45 Cr)
Allotment Date
09 Jun 2026
Listing at
NSE
Issue type
Fixed Price - SME
Sector
Chemicals
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T&C*
Strengths vs Risks of Vahh Chemicals Ltd
Know the pros & cons
Strengths
- Long standing relationships with a diversified customer base.
- Business Model focused on customized solutions and strong customer relationships.
- Experienced Promoters and management team.
Risks
- The company generates a substantial portion of revenue from Surat, Gujarat. Any adverse developments affecting its operations in the Gujarat could has an adverse impact on the company revenue and results of operations.
- There is certain outstanding legal proceeding involving the company Promoter and Promoter Entities which may adversely affect its business, financial condition and results of operations.
- The company top ten customers contribute about 68.06%, 60.01% and 84.43% of its revenues for the year ended March 31, 2026, March 31, 2025 and March 31, 2024. Any loss of business from one or more of them may adversely affect the company revenues and profitability.
- The company is dependent upon few suppliers for the material requirements of its business. Further, the company does not has definitive agreements or fixed terms of trade with most of its suppliers. Failures to successfully leverage the company relationships with existing suppliers or to identify new suppliers could adversely affect its business operations.
- Any disruptions to the supply, or increases in the pricing, of the raw materials and finished products that the company procure, may adversely affect the supply and pricing of its products and, in turn, adversely affect the company business, cash flows, financial condition and results of operations.
- The Company has acquired the running business previously owned by two of the promoters and directors. Any liabilities or challenges arising from this acquisition could negatively impact the Company's financial performance and operations.
- The Company is dependent on third party transportation providers for the delivery of raw materials and finished products. Accordingly, continuing increases in transportation costs or unavailability of transportation services for its products, as well the extent and reliability of Indian infrastructure may has an adverse effect on the Company's reputation, business, financial condition, results of operations and prospects.
- The company has experienced growth in recent years and may be unable to sustain its growth or manage it effectively. The company cannot assure you that its will be able to successfully execute the company growth strategies, which could affect its business, prospects, results of operations and financial condition.
- The company has in the past entered into related party transactions and may continue to does so in the future.
- The company constantly faces a credit risk which may in turn affect its complete buying cycle adversely.
- The company does not own the premises in which its proposed manufacturing unit will be located and the same is on lease arrangement. Any termination of such lease/license and/or non-renewal thereof and attachment by Property Owner could adversely affect the company operations.
- The Company is presently not required to obtain a factory licence under the Occupational Safety, Health and Working Conditions Code, 2020 (OSH Code), as the number of persons employed does not exceed the prescribed statutory threshold but will be mandatorily required to obtain a factory licence and comply with the provisions of the Occupational Safety, Health and Working Conditions Code, 2020 (OSH Code), and the rules made thereunder. Any delay or failures in obtaining the requisite factory licence upon applicability may expose the Company to regulatory action, penalties and may adversely affect its operations.
- The company does not own the premises in which its registered office, manufacturing unit and godown are located and the same are on lease arrangement. Any termination of such lease/license and/or non-renewal thereof and attachment by Property Owner could adversely affect its operations.
- There is certain discrepancies and non-compliances noticed in some of the company corporate records relating to forms filed with the Registrar of Companies.
- The company net cash flows from operating, activities has been negative in some years in the past. Any negative cash flow in the future may affect its liquidity and financial condition.
- There has been several instances of delay/ default in payment of statutory dues and filing of statutory returns by its Company in the past.
- Unsecured loans taken by the Company. Its inability to meet the company obligations, including financial and other covenants under its debt financing arrangements could adversely affect the company business, results of operations and financial condition.
- The company has working capital requirements. If its experience insufficient cash flows to make required payments on the company debt or fund working capital requirements, there may be an adverse effect on its results of operations.
- The company is yet to place orders for the equipment proposed to be funded through this Issue. In the event of any delay in placing the orders, or in the event the vendors is not able to provide the equipment in a timely manner, or at all, it may result in time and cost over-runs and the company business, results of operations, financial condition and cash flows may be adversely affected.
- The Company's financial performance and growth is significantly dependent on the sustained profitability and operational success of its Subsidiaries. Any downturn in the performance of one or more of the company key Subsidiaries could adversely affect its business, financial condition, cash flows and results of operations.
- The company inability to accurately forecast demand for its products and manage the company inventory may has an adverse effect on its business, financial condition, results of operations and cash flows.
- Any IT system failures or lapses on part of any of the company employees may lead to operational interruption, liabilities or reputational harm.
- If the company is unable to protect, maintain, or obtain registration for its trademarks, or if such rights are infringed, the company business, reputation, and financial condition may be adversely affected.
- The company financing agreements contain covenants that limit its flexibility in operating the company business. Its inability to meet the company obligations, including financial and other covenants under its debt financing arrangements could adversely affect the company business, results of operations and financial condition.
- The company manufacturing operations is significantly dependent on the continuous and efficient functioning of its two blender machines. Any disruption, breakdown or under performance of these machines may adversely affect the company business, financial condition and results of operations.
- The company business is dependent on its operating facility in Gujarat. The loss or shutdown of the company facilities could has a material adverse effect on its business, financial condition and results of operations.
- The company insurance coverage may not adequately protect its against all material hazards, which may adversely affect the company business, results of operations and financial condition.
- The company business is operating under various laws which requires its to obtain approvals from the concerned statutory/regulatory authorities in the ordinary course of business and the company inability to obtain, maintain or renew requisite statutory and regulatory permits and approvals for its business operations could materially and adversely affect the company business, prospects, results of operations and financial condition.
- Changing regulations in India could lead to new compliance requirements that is uncertain. The regulatory environment in which the company operates is evolving and is subject to change.
- Unsecured loans taken by the Company can be recalled by the lenders at any time.
- Lapses in precision, accuracy or quality control in the company products may lead to customer dissatisfaction, product rejections, reputational damage, or financial losses.
- The company faces competition in its business from organized and unorganized players, which may adversely affect the company business operations and financial condition.
- The company inability to effectively manage its growth or to successfully implement the company business plan and growth strategies could has an adverse effect on its business, results of operations and financial condition. The success of the company business will depends greatly on its ability to effectively implement the company business and growth strategies.
- If the company is subject to any fraud, theft, or embezzlement by its employees, it could adversely affect the company reputation, results of operations and financial condition. Its could be harmed by employee misconduct or errors that is difficult to detect and any such incidences could adversely affect the company financial condition, results of operations and reputation.
- The company intend to utilise a portion of the Net Proceeds towards part financing the cost of establishing a new manufacturing unit to manufacture chemical, and its cannot assure you that the company will be able to derives the benefits from the proposed object.
- The determination of the Issue Price is based on various factors and assumptions and the Issue Price of the Equity Shares may not be indicative of the market price of the Equity Shares after the Issue.
- Information relating to installed capacity, effective installed capacity, actual production and capacity utilization of the company Manufacturing Facilities included in this Prospectus is based on various assumptions and estimates by the chartered engineer verifying such information and future production and capacity utilization may vary.
- There is outstanding dues payable to certain creditors registered as MSMEs and any delay in payment of such dues may expose the Company to statutory liabilities, penalties and other adverse consequences under the MSME Act.
- The company funding requirements and the proposed deployment of Net Proceeds is not appraised by any independent agency, which may affect its business and results of operations.
- There may be potential conflicts of interest if the company Promoters or Directors get involved in any business activities that compete with or are in the same line of activity as its business operations.
- The company success largely depends upon the knowledge and experience of its Promoters, Directors, the company Key Managerial Personnel and Senior Management as well as its ability to attract and retain personnel with technical expertise. Any loss of the company Promoter, Directors, Key Managerial Personnel, Senior Management or its ability to attract and retain them and other personnel with technical expertise could adversely affect the company business, financial condition and results of operations.
- In addition to normal remuneration or benefits and reimbursement of expenses, some of the company directors and key managerial personnel are interested in its company to the extent of their shareholding and dividend entitlement in the Company.
- None of the company Directors possess experience of being on the board of any listed company.
- The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the Issue. Further the company has not identified any alternate source of financing the `Objects of the Issue'.
- There is no monitoring agency appointed by the Company and the deployment of funds are at the discretion of its Management and the company Board of Directors, though it shall be monitored by the Audit Committee.
- The continuing effect of the COVID-19 pandemic on the company business and operations is highly uncertain and cannot be predicted.
- Any variation in the utilization of the Net Proceeds as disclosed in this Prospectus shall be subject to certain compliance requirements, including prior Shareholders' approval.
- The requirements of being a public listed company may strain the company resources and impose additional requirements.
Vahh Chemicals Ltd Peer Comparison
Understand the company’s industry standing
Vahh Chemicals Limited
Bhatia Colour Chem Limited
Face Value
10
10
Standalone / Consolidated
Consolidated
Standalone
Total Income Rs. Cr.
43.15
154.62
EPS-Basis
8
2.95
EPS-Diluted
8
2.95
NAV Per Share
24.6
73.8
P/E-Basic EPS
7.50
18.07
P/E-Diluted EPS
---
---
RONW(%)
32.21
4
Latest NAV Period
---
---
Latest NAV
---
---
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The IPO opens on 04 Jun 2026 & closes on 08 Jun 2026.
Vahh Chemicals Limited was originally incorporated and registered as a Public Limited Company under Companies Act, 2013 vide certificate of incorporation dated December 11, 2019 issued by the Registrar of Companies, Central Registration Centre.
Company is engaged in the business of manufacturing and trading of textile auxiliaries chemicals. The operations primarily involve the sourcing and blending of textile chemicals essential for various stages of textile processing, including pre-treatment, dyeing, printing, and finishing. These chemicals are essential for improving fabric quality, its texture, enhancing colour vibrancy, and ensuring the durability of the finished textile products. The main strength of the products are its formulation of chemicals and quality maintenance.
The Company has strong distribution network in Surat, supported by strategically positioned manufacturing facility. In 2019, Company transitioned into a corporate structure under 'Vahh Chemicals Limited'. In 2019 , Hiren Desai along with the second generation promoter 'Aayush Hiren Desai' commenced the business of nutrition under the subsidiary 'HSHS Nutraceuticals Limited'.
On September 2024, Company has taken over the proprietary business together with all its assets and liabilities of the -M/s Aayush Chemical, proprietorship of Aayush Hiren Desai; M/s Aayush Bio-Energy, proprietorship of Hetal Hirenbhai Desai, Promoters of the Company. Aayush Chemical, which was established in 2020, was engaged in the business of manufacturing and trading of chemicals.
The Company has filed a Draft Prospectus with SEBI and is planning a fresh issue of 22,42,000 equity shares of Rs 10 each by raising funds through IPO aggregating to Rs 11.88 Crores.
Vahh Chemicals Ltd IPO will close on 08 Jun 2026.
- Long standing relationships with a diversified customer base.
- Business Model focused on customized solutions and strong customer relationships.
- Experienced Promoters and management team.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Hiren Indravadan Desai | 1349856 | 22.26 | 1349856 | 16.25 |
| 2 | Hetal Hirenbhai Desai | 2765880 | 45.61 | 2765880 | 33.3 |
| 3 | Aayush Hiren Desai | 1251936 | 20.65 | 1251936 | 15.07 |
- The company generates a substantial portion of revenue from Surat, Gujarat. Any adverse developments affecting its operations in the Gujarat could has an adverse impact on the company revenue and results of operations.
- There is certain outstanding legal proceeding involving the company Promoter and Promoter Entities which may adversely affect its business, financial condition and results of operations.
- The company top ten customers contribute about 68.06%, 60.01% and 84.43% of its revenues for the year ended March 31, 2026, March 31, 2025 and March 31, 2024. Any loss of business from one or more of them may adversely affect the company revenues and profitability.
- The company is dependent upon few suppliers for the material requirements of its business. Further, the company does not has definitive agreements or fixed terms of trade with most of its suppliers. Failures to successfully leverage the company relationships with existing suppliers or to identify new suppliers could adversely affect its business operations.
- Any disruptions to the supply, or increases in the pricing, of the raw materials and finished products that the company procure, may adversely affect the supply and pricing of its products and, in turn, adversely affect the company business, cash flows, financial condition and results of operations.
- The Company has acquired the running business previously owned by two of the promoters and directors. Any liabilities or challenges arising from this acquisition could negatively impact the Company's financial performance and operations.
- The Company is dependent on third party transportation providers for the delivery of raw materials and finished products. Accordingly, continuing increases in transportation costs or unavailability of transportation services for its products, as well the extent and reliability of Indian infrastructure may has an adverse effect on the Company's reputation, business, financial condition, results of operations and prospects.
- The company has experienced growth in recent years and may be unable to sustain its growth or manage it effectively. The company cannot assure you that its will be able to successfully execute the company growth strategies, which could affect its business, prospects, results of operations and financial condition.
- The company has in the past entered into related party transactions and may continue to does so in the future.
- The company constantly faces a credit risk which may in turn affect its complete buying cycle adversely.
- The company does not own the premises in which its proposed manufacturing unit will be located and the same is on lease arrangement. Any termination of such lease/license and/or non-renewal thereof and attachment by Property Owner could adversely affect the company operations.
- The Company is presently not required to obtain a factory licence under the Occupational Safety, Health and Working Conditions Code, 2020 (OSH Code), as the number of persons employed does not exceed the prescribed statutory threshold but will be mandatorily required to obtain a factory licence and comply with the provisions of the Occupational Safety, Health and Working Conditions Code, 2020 (OSH Code), and the rules made thereunder. Any delay or failures in obtaining the requisite factory licence upon applicability may expose the Company to regulatory action, penalties and may adversely affect its operations.
- The company does not own the premises in which its registered office, manufacturing unit and godown are located and the same are on lease arrangement. Any termination of such lease/license and/or non-renewal thereof and attachment by Property Owner could adversely affect its operations.
- There is certain discrepancies and non-compliances noticed in some of the company corporate records relating to forms filed with the Registrar of Companies.
- The company net cash flows from operating, activities has been negative in some years in the past. Any negative cash flow in the future may affect its liquidity and financial condition.
- There has been several instances of delay/ default in payment of statutory dues and filing of statutory returns by its Company in the past.
- Unsecured loans taken by the Company. Its inability to meet the company obligations, including financial and other covenants under its debt financing arrangements could adversely affect the company business, results of operations and financial condition.
- The company has working capital requirements. If its experience insufficient cash flows to make required payments on the company debt or fund working capital requirements, there may be an adverse effect on its results of operations.
- The company is yet to place orders for the equipment proposed to be funded through this Issue. In the event of any delay in placing the orders, or in the event the vendors is not able to provide the equipment in a timely manner, or at all, it may result in time and cost over-runs and the company business, results of operations, financial condition and cash flows may be adversely affected.
- The Company's financial performance and growth is significantly dependent on the sustained profitability and operational success of its Subsidiaries. Any downturn in the performance of one or more of the company key Subsidiaries could adversely affect its business, financial condition, cash flows and results of operations.
- The company inability to accurately forecast demand for its products and manage the company inventory may has an adverse effect on its business, financial condition, results of operations and cash flows.
- Any IT system failures or lapses on part of any of the company employees may lead to operational interruption, liabilities or reputational harm.
- If the company is unable to protect, maintain, or obtain registration for its trademarks, or if such rights are infringed, the company business, reputation, and financial condition may be adversely affected.
- The company financing agreements contain covenants that limit its flexibility in operating the company business. Its inability to meet the company obligations, including financial and other covenants under its debt financing arrangements could adversely affect the company business, results of operations and financial condition.
- The company manufacturing operations is significantly dependent on the continuous and efficient functioning of its two blender machines. Any disruption, breakdown or under performance of these machines may adversely affect the company business, financial condition and results of operations.
- The company business is dependent on its operating facility in Gujarat. The loss or shutdown of the company facilities could has a material adverse effect on its business, financial condition and results of operations.
- The company insurance coverage may not adequately protect its against all material hazards, which may adversely affect the company business, results of operations and financial condition.
- The company business is operating under various laws which requires its to obtain approvals from the concerned statutory/regulatory authorities in the ordinary course of business and the company inability to obtain, maintain or renew requisite statutory and regulatory permits and approvals for its business operations could materially and adversely affect the company business, prospects, results of operations and financial condition.
- Changing regulations in India could lead to new compliance requirements that is uncertain. The regulatory environment in which the company operates is evolving and is subject to change.
- Unsecured loans taken by the Company can be recalled by the lenders at any time.
- Lapses in precision, accuracy or quality control in the company products may lead to customer dissatisfaction, product rejections, reputational damage, or financial losses.
- The company faces competition in its business from organized and unorganized players, which may adversely affect the company business operations and financial condition.
- The company inability to effectively manage its growth or to successfully implement the company business plan and growth strategies could has an adverse effect on its business, results of operations and financial condition. The success of the company business will depends greatly on its ability to effectively implement the company business and growth strategies.
- If the company is subject to any fraud, theft, or embezzlement by its employees, it could adversely affect the company reputation, results of operations and financial condition. Its could be harmed by employee misconduct or errors that is difficult to detect and any such incidences could adversely affect the company financial condition, results of operations and reputation.
- The company intend to utilise a portion of the Net Proceeds towards part financing the cost of establishing a new manufacturing unit to manufacture chemical, and its cannot assure you that the company will be able to derives the benefits from the proposed object.
- The determination of the Issue Price is based on various factors and assumptions and the Issue Price of the Equity Shares may not be indicative of the market price of the Equity Shares after the Issue.
- Information relating to installed capacity, effective installed capacity, actual production and capacity utilization of the company Manufacturing Facilities included in this Prospectus is based on various assumptions and estimates by the chartered engineer verifying such information and future production and capacity utilization may vary.
- There is outstanding dues payable to certain creditors registered as MSMEs and any delay in payment of such dues may expose the Company to statutory liabilities, penalties and other adverse consequences under the MSME Act.
- The company funding requirements and the proposed deployment of Net Proceeds is not appraised by any independent agency, which may affect its business and results of operations.
- There may be potential conflicts of interest if the company Promoters or Directors get involved in any business activities that compete with or are in the same line of activity as its business operations.
- The company success largely depends upon the knowledge and experience of its Promoters, Directors, the company Key Managerial Personnel and Senior Management as well as its ability to attract and retain personnel with technical expertise. Any loss of the company Promoter, Directors, Key Managerial Personnel, Senior Management or its ability to attract and retain them and other personnel with technical expertise could adversely affect the company business, financial condition and results of operations.
- In addition to normal remuneration or benefits and reimbursement of expenses, some of the company directors and key managerial personnel are interested in its company to the extent of their shareholding and dividend entitlement in the Company.
- None of the company Directors possess experience of being on the board of any listed company.
- The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the Issue. Further the company has not identified any alternate source of financing the `Objects of the Issue'.
- There is no monitoring agency appointed by the Company and the deployment of funds are at the discretion of its Management and the company Board of Directors, though it shall be monitored by the Audit Committee.
- The continuing effect of the COVID-19 pandemic on the company business and operations is highly uncertain and cannot be predicted.
- Any variation in the utilization of the Net Proceeds as disclosed in this Prospectus shall be subject to certain compliance requirements, including prior Shareholders' approval.
- The requirements of being a public listed company may strain the company resources and impose additional requirements.
The Issue type of Vahh Chemicals Ltd is Fixed Price - SME.
The minimum application for shares of Vahh Chemicals Ltd is 4000.
The total shares issue of Vahh Chemicals Ltd is 2242000.
Initial public issue of 22,42,000 equity shares of face value of Rs. 10/- each of the company for cash at a price of Rs. 60/- per equity share (including a share premium of Rs. 50/- per equity share) aggregating upto Rs. 13.45 Crores ("the Issue"), out of which 1,14,000 equity shares of face value of Rs. 10/- each aggregating to Rs. 0.68 Crores will be reserved for subscription by the market maker to the issue (the "Market Maker Reservation Portion"). The issue less market maker reservation portion i.e. Issue of 21,28,000 equity shares of face value of Rs. 10/- each, at an issue price of Rs. 60/- per equity share for cash, aggregating to Rs. 12.77 Crores is hereinafter referred to as the "Net Issue". The public issue and net issue will constitute 26.99% and 25.62% respectively of the post-issue paid-up equity share capital of the company.
Issue Price: Rs. 60/- per equity share of face value of Rs. 10 each.
The Issue price is 6.0 times of the face value.
Minimum application size of 4,000 equity shares and in multiples of 2,000 equity shares thereafter.